Summer 2016

President’s MessageSue Basiago, Midland Title

In This Issue

MLTA ....................................................................................1President’s Letter2016 ConventionMLTA on Social MediaWelcome New MembersMinn Land Title Association State Political FundEdie Michalski Wins Duluth Art Institute AwardMembers to Receive Discounts for ALTA EducationMLTA Advertisers

Minnesota Electronic Real Estate Recording Commission (ERERC) ......................................................6

Industry Events .................................................................7

ALTA .....................................................................................82016 Annual Convention2017 SPRINGBOARD ConferenceCompliance Webinar: Primer on RESPA’s Anti-kickback ProhibitionTitle Action Network (TAN)ALTA Board Approvals - Comments Accepted

- Adopt, Revise, Decertify Forms - Modifications to Best Practices - Best Practices Maturity Model to Help Measure

CompliancePRIA .....................................................................................9

PRIA Publishes Best Practices for Certifying Copies for Land RecordsRevised PRIA Glossary & Acronyms

NAIC ....................................................................................10ALTA Helps Pressure NAIC to Open Dialogue About State Model Cyber LawNAIC Cybersecurity Task Force

HUD .....................................................................................11HUD Adopts New ALTA Survey Standards into Requirements for Multi-family Loans

Notarization .......................................................................12National Association of Secretaries of State Launches Remote Notarization Task ForceStatus of eNotarization in the United StatesUniform Law CommissionThe Notary Public Administrators Section of the National Association of Secretaries of State

Resources for those caring for the finances of seniors and other vulnerable adults .........................18

World Elder Abuse Awareness Day FTC’s Pass it OnCFPB’s Money Smart for Older AdultsCFPB’s Managing Someone Else’s Money GuidesNAIC’s Insure U Senior Education Campaign

ALTA Board Approvals - Full Articles ........................20

CFPB Headlines...............................................................26

MLTA Leadership .............................................................36

Greetings,Although we are in the midst of our busy season, my hope is that you find time to read this edition of TitleGram. In continuing with MLTA’s pledge to provide value for your membership, I am excited to announce that MLTA has partnered with BConnected, a social media management company, to move forward MLTA’s social media initiative to enhance the value of your MLTA membership. The goal of this initiative is to provide MLTA members not only timely and relevant information but resources to assist you in your everyday business. Thank you to the Technology Committee for working diligently on this initiative. You will see BConnected in action at the MLTA Annual Convention on August 4 and 5.The Education Committee held an Intro to Closing Class in May and had a sold out crowd. Plans for another course in the fall will be announced at the Convention. The plans for an Exam course are moving forward with the hope of a class in early 2017. Another member benefit that went online this year is the discount for ALTA Education courses. Please sign into the website and look under the Documents tab in the member center for more information.The Minnesota legislative season ended with little effect on our industry. The Legislative Committee will give a detailed update at the Convention in a few short weeks. Dan Pearson, Nancy Landmark, Richard Welshons and I attended the ALTA Federal Conference in mid-May. As you might expect there was a lot of discussion about Know Before You Owe and discussions with our representatives and senators about how they can assist our industry in further regulations and discussions with the CFPB. And who can forget that this is an important election year. Obviously there was a great deal of conversation at the Federal Conference about the upcoming presidential election. But there was also discussion about the importance of the state and local elections as well. And that is where you, members of MLTA, can assist the Legislative Committee in the important work they will be doing as the elections approach. As we have discussed in our meetings this last year, MLTA has set up a political action fund, Minn Land Title Association State Political Fund (Minn Title PAC) and we are taking donations. A letter from the Board and Legislative Committee explaining the importance of the PAC and how to contribute is included in this issue of TitleGram.My tenure as your association President is fast coming to a close. I have enjoyed the opportunity to represent our industry this past year. Thank you to the members that have reached out to me with ideas and concerns, all the volunteers serving on the various committees, and to the members of the Board. I believe we accomplished a great deal this past year and I look forward to Nancy Landmark’s leadership in the next year.I look forward to seeing all of you at the Convention in August!Sue BasiagoPresident, Minnesota Land Title Association

Thursday, August 48am Continental Breakfast

Registration Desk OpenMLTA Boards of Directors Meeting

9am Exhibitors Area Open For MLTA Attendees & Guests

10am Welcome and Business Meeting with Leadership Reports and Exhibitor Introductions

Noon Lunch

1pm Optional ActivitiesGolf Tournament – Atikwa Golf CourseWinery Tour/Wine Tasting – Carlos Creek Winery Pontoon Rides – Sponsored by ORBIT Systems & Solutions

6pm Ice Breaker & Picnic

8pm Underwriter Hosted Hospitality Bar

Friday, August 58am Continental Breakfast

Exhibitors Area Open For MLTA Attendees & Guests9am Opening Comments

VJ Smith – Author of “The Richest Man in Town”10:30am Break – Visit Exhibitors

10:45am Wells Fargo Senior Executive Kate SteinemanLife Following TRID, Agent Scorecards, Lender Perspective

Noon LunchPOPS Lunch - Sponsored by Tony Winczewski & Commercial Partners Title

1pm Visiting State Association's Comments • WLTA Representative Tom Cullen • NDLTA Representative Nick Hacker• ILTA President Andrew Nordstrom

1:30pm ALTA Speaker - ALTA Board of Governor’s Agent & Abstractor Section Representative, Mr. Richard Welshons

2:30pm Break

2:45pm Former Minnesota Governor Mr. Arne Carlson

5:30pm Cocktail Party

6:30pm Banquet and Installation of Officers followed by entertainment from SongBlast Dueling Guitars

9pm Underwriter Hosted Hospitality Bar

MLTA 2016 CONVENTIONThursday - Friday, August 4-5, 2016Arrowwood Resort and Conference Center, Alexandria, MN

Arrowwood Resort and Conference Center2100 Arrowwood Lane NWAlexandria, MN 56308(320) 762-1124www.arrowwoodresort.com

ReservationsReservations can be made online or by phone. The group rate is no longer available; however, reservations can be made at the regular resort rate. Room availability is extremely limited.

FEES Member Non-member

Regular RegularRegular $225 $275Guest $150 $220Optional Events• Golf - $75• Winery Tour (limited to the first 50) - $40• Pontoon Ride* (limited to the first 36) - Free

*Sponsored by ORBIT Systems & Solutions

Fees and Registration

Register online at www.mlta.org.

Hosted by:

TITLEGRAM 2016-02 • 2

MLTA on Social Media Coming Soon!This year’s convention will serve as the platform for MLTA’s foray into social media. MLTA recently secured the services of BConnected LLC to develop its social media efforts. Representatives will be at convention on Thursday, August 4 taking videos and asking for member testimonials which will be used to launch both Facebook and LinkedIn pages. This is an exciting step for our organization, and we look forward to developing an online community.

MLTA Announces the Formation of the Minn Land Title Association State Political FundWe are writing to ask for your financial support for the Minn Land Title Association State Political Fund (Minn Title PAC).

One of the key benefits MLTA membership provides is on our work at the state capitol. The association, through both its leadership and the Legislative Committee, monitors developments in laws and regulations and works diligently with lobbyists and legislators to prevent detrimental legislation and regulations from being enacted. Some recent examples of these efforts include:

• MLTA Day at the capitol, where you meet with your elected representatives to discuss current issues affecting your business;

• Negotiating revisions to Safe At Home Act;

• Continuing to deflect attempts to make title companies and closers liable for financial abuse of vulnerable or older adults; and

• Opposing efforts to seize interest earned on real estate trust accounts.

Through Minn Title PAC, we also work to develop relationships with key legislators in the interim by hosting several fundraisers and attending caucus events. We are careful to ensure that our PAC supports both Republicans and Democrats. In order to make such contributions as an association, the MLTA established the Minn Title PAC. Funds raised through the Minn Title PAC will be used solely for supporting candidates running for state-level offices here in Minnesota. By supporting candidates that care about our issues, we ensure that the MLTA’s voices will be heard when the need arises.

Even if you are not directly involved as an MLTA volunteer, you can still have a significant impact in the association’s efforts by contributing to the Minn Title PAC. Any size donation is welcomed. Donations must be made by individuals, and may not come from corporate accounts. Please consider donating to the Minn Title PAC today and help ensure that our voices are heard throughout the state and that our collective livelihood will be protected. Donations can be made to:

Minn Land Title Association State Political Fund 1250 North Frontage Road Hastings, MN 55033

Thank you for your contribution!

Sincerely,

MLTA Board of Directors and MLTA Legislative Committee

EdgewaterExcelsior, MN

www.edtitle.com

Elite Title & Escrow Corp.Baxter, MN

www.elitetitle.co

Global Closing & Title Services, LLCEagan, MN

www.gcstitle.com

Hennepin CountyMinneapolis, MNwww.hennepin.us

Modern TitleAndover, MN

www.moderntitlemn.com

Welcome New Members!

TITLEGRAM 2016-02 • 3

Congratulations Edie!MLTA Past President Edie Michalski, owner of Arrowhead Abstract & Title in Duluth won this year’s People’s Choice Award at the Duluth Art Institute’s annual membership exhibition.

The People’s Choice Award at the Duluth Art Institute’s Annual Membership Exhibition recognizes the audience’s favorite work out of 175 on view. This year, the top vote went to Edie Michalski’s watercolor painting, Ed, North Shore Fisherman, chosen from a broad

range of media and genres on display in the Great Hall of the Duluth Depot. The people cast their vote at the exhibition’s opening reception on Thursday, January 21.

“You can’t help but be drawn in by Edie’s portrait. She has tremendous technical skill as a painter but she also has a clear sensitivity towards her subject. That dexterity is evident in this piece,” said Anne Dugan, Executive & Artistic Director of the Duluth Art Institute. “I’m thrilled that Edie was recognized by the Duluth Art Institute membership.”

Michalski is an accomplished artist whose family connection to Lake Superior goes back four generations. All of her great-grandparents came to the area between 1854 and 1897, and fishing—especially herring fishing—was a huge part of her family’s history.

For this piece, Michalski was inspired by Mary White, who paints ordinary, everyday people doing their work. Michalski realized she wanted to celebrate the fishing tradition of her family and sourced material from Brian Tofte, who owns a series of historic photos documenting the area’s fishing history. Ed, North Shore Fisherman is the first in a planned series of portraits of Norwegian Herring Fishermen. This one depicts Ed Holte, who commercial fished from Wright Island in Siskiwit Bay, Isle Royale. His father-in-law was Sam Johnson, who founded Sam Johnson & Sons Fisheries, Inc., in Duluth, MN, in the early 1900s.

http://www.duluthartinstitute.org/news-blog?limitstart=0

http://www.duluthnewstribune.com/ae/arts/3933323-applause-peoples-choice-award-dais-membership-show

TITLEGRAM 2016-02 • 4

MLTA Members Receive Discounted ALTA Educational OpportunitiesMembers of MLTA may take advantage of special pricing on ALTA educational materials. Log in to the MLTA website and look under the Documents tab in the Member Center for instructions. Available courses are subject to change and may include titles such as:Title 101 is designed for new or less-experienced title employees and others seeking a basic knowledge of the title business and its unique terminology. Candidates for this course include: receptionists, administrative staff, new hires, searchers, examiners, closers, and sales and marketing staff. http://www.alta.org/lti/course1.cfmTitle 201 is an advanced-level curriculum that offers students general information on specific subjects while providing continuing education. It is designed to meet the needs of three basic groups of students: (1) Title 101 graduates; (2) experienced title industry personnel desiring further education; and (3) recent law school graduates. http://www.alta.org/lti/course2.cfmEscrow Accounting Procedures Course presents a model system of good managerial practices designed to minimize risk in handling escrow funds. The course is comprised of four Educational Modules, each ending with a set of questions to reinforce the course content, and a valuable Resource Guide. http://www.alta.org/lti/escrowaccountingcourse.cfmEthics in the Title Industry is a correspondence course specifically designed to address title-related ethical issues. All title industry professionals, from closers to legal counsel and from owners to administrative assistants, would benefit from taking this course. http://www.alta.org/lti/ethics.cfmEducation DVD titles include:

Epic Property Services, Inc.Epic Property Services, Inc. was founded January 1st, 2015 and is a Best Practices Qualified Vendor. Epic Property Services (EPS) serves its customers by offering property inspections, plat drawings, priority pictures, insurance inspections, special assessment searches, utility searches, construction progress reports (CPR) and much more. Our customers are: lenders, community banks, title companies, underwriters, insurance companies, municipalities, commercial, and residential.

Epic Property Services (EPS) professional staff will partner with its customers in an effort to support their purpose, values, and strategies. The staff’s focus is on sustaining relationships and tailoring our services to meet our customers’ needs. Our Staff has over 128 years of servicing the settlement services industry and are looking forward to the next 128! www.epicpropertyservicesinc.com

SoftProSoftPro is the nation’s leading provider of closing and title software, consistently pushing the technological envelope to pioneer the most powerful and comprehensive closing and title automation software on the market. SoftPro’s Award-Winning Software combines cutting-edge technology with outstanding support to make your business more productive, efficient and boost your revenue. It is fully customizable and scalable so you can work the way you want, yet also conforms to the latest regulations so you can keep compliant within our ever-changing industry. As your software partner, you can trust SoftPro to keep you ahead of the curve, when it comes to Best Practices, CFPB regulations and more! Contact SoftPro Sales today at (800) 848-0143 or Sales@SoftProCorp.com to see a FREE Demo of our CFPB Ready Software! Visit www.SoftProCorp.com for more information. Start following www.SoftProCurrent.com.

J.A. Price Agency, Inc.At JA Price, as an Independent Property/Casualty Insurance Agency, we understand the exposures that face the title profession. Over the last few years, our coverage offerings have expanded from mainly just E & O to many of the new exposures that have inflicted your industry. Most notably, these include Fidelity, Cyber Liability & Computer Crime, including Social Engineering. We pride ourselves on staying on top of the risks of your profession and offering timely, comprehensive and cost-effective coverage to meet your needs. Please inquire with us for more information. www.japrice.com

SimplifileSimplifile is an online service that connects lenders, settlement agents, and counties. From e-recording to document sharing, and collaboration, Simplifile offers an array of services in one place to help users securely record, share, and track documents, data, and fees with ease. To learn more, visit simplifile.com or call 800-460-5657. www.simplifile.com

• The TILA-RESPA Integrated Disclosures Rule• The Need For Land Title Services• Claims Awareness• Principles of Title Searching• This Land Is My Land, That Land is Your Land• Behind the Scenes: A Look at the Settlement Process

• The Return of Thaddeus Eagle: Completing a Title Insurance Commitment Form

• The Policy Detectives: An Introduction to ALTA’s 2006 Loan and Owner’s Policies

• Closing Real Estate Transactions in 2010: The New RESPA Rule, GFE & HUD-1

Thank You MLTA Advertisers

ALTA’s Board Game “Title Triumph” is also available.

TITLEGRAM 2016-02 • 5

Minnesota Electronic Real Estate Recording Commission (ERERC)With 82 counties doing some type of eRecording we are down to our last 5 counties. Nicollet is one of those counties and they will be eRecording all document types within the next few weeks. The commission is very grateful to those counties that have instituted eRecording and those that are currently working on going live.

We also wish to thank title companies for working with recorders to implement eRecording. We encourage you to let the recorders know the value eRecording brings to your companies. This is more impactful than you may think.

The commission is revamping it’s current website. While still under construction the site includes valuable information such as the eRecord state map and the new eRecording guidelines /definitions. Check it out and let us know what you think. Visit http://www.mnererc.com/.

The commission meets quarterly at the Association of Minnesota Counties office in St. Paul. The remaining meeting in 2016 is scheduled for Thursday, October 20 from 1:30 - 3:30 p.m.. All are welcome to attend or join by phone.

For additional information, contact ERERC Chair Jeff Carlson at JCarlson@INDECOMM.Net.

ERERC Members as of July 2016

ChairJeff Carlson, Indecomm GlobalMinnesota Land Title Association (MLTA)

Vice-ChairKay Wrucke, Martin CountyMinnesota Association of County Recorders (MACO)

State Archivist (a permanent position)Shawn Rounds, Minnesota Historical Society

MembersEileen Roberts, Dorsey WhitneyMinnesota State Bar Association (MSBA)

PendingMinnesota Mortgage Bankers Association (MBA)

Pam Trombo, eRecording PartnersVendor Representative

Steve Holthaus, Stearns CountyCounty Recorder Representative

Martin McCormick, Hennepin CountyCounty Recorder Representative

As of June, 2016:

• 67 counties accept all documents for eRecording representing 77% of counties and 86% of MN population;

• 14 counties accept some, but not all, documents for eRecording; representing 16% of counties and 12% of MN population

• 3 counties plan to accept at least some documents for eRecording by the end of 2016; and

• 2 counties either record only paper documents or have not reported their eRecording status to the ERERC.

TITLEGRAM 2016-02 • 6

INDUSTRY EVENTSMINNESOTA LAND TITLE ASSOCIATION

MLTA 2016 ConventionThursday-Friday, August 4-5, 2016Arrowwood Resort & Conference CenterAlexandria, MNhttp://www.mlta.org

IOWA LAND TITLE ASSOCIATION

Legal Descriptions CourseSeptember 9, 2016Iowa Valley Community College - Grinnell

Legal Entities & Special Circumstances CourseNovember 11, 2016 UNI Curris Business Building, Conference Rooms 1 & 3

http://www.iowalandtitle.org/events_list.cfm

NORTH DAKOTA LAND TITLE ASSOCIATION

NDLTA 2016 State ConventionSeptember 8-10, 2016Ramada Plaza Suites, Fargo, ND

http://www.ndlta.org/events.html

SOUTH DAKOTA LAND TITLE ASSOCIATION

SDLTA 2017 Annual ConventionDates TBAYankton, SD

SDLTA 2017 Mid-Winter MeetingWednesday, February 1, 2017Ramkota RiverCenter, Pierre, SD

http://www.sdlta.org/events.html

WISCONSIN LAND TITLE ASSOCIATION

Pre-Licensing Seminars• September 22, 2016, Hudson, Venue

TBA• December 9, 2016, Wisc. Bankers Assn.

Bldg, Madison

Title Examiner CoursesWisconsin Bankers Assn. Building, Madison• Title Examiner Courses I, III & V -

November 5, 2016 • Title Examiner Courses II, IV, VI -

November 6, 2016

Graduate Course-Claims Avoidance Strategies Part 3November 10, 2016Glacier Canyon Conference Ctr., WI Dells

WLTA Annual Fall ConventionOctober 14-16, 2016 The Grand Hotel, Mackinac, Michigan

http://www.wlta.org/wlta/events.asp

AMERICAN LAND TITLE ASSOCIATION

Homebuyer Outreach Program (HOP) WorkshopsMissouri - August 3, 2016Sheraton Kansas City at Crown Centerhttp://meetings.alta.org/hop/

Compliance Webinar: Primer on RESPA’s Anti-kickback ProhibitionAugust 10, 2016, 1:00-2:00 p.m. EThttp://www.alta.org/index.cfmAnnual ConventionOctober 4-7, 2016 Fairmont Scottsdale Princess Scottsdale, AZhttp://meetings.alta.org/annual/

Springboard March 8-10, 2017 Omni Fort Worth, Fort Worth, TXhttp://meetings.alta.org/springboard/Advocacy SummitMay 8-10, 2017The Watergate HotelWashington, DChttp://meetings.alta.org/advocacy/

MINNESOTA ASSOCIATION OF COUNTY OFFICERS

2017 MACO Annual ConferenceFebruary 6-10, 2017DoubleTree by Hilton Bloomingtonhttp://www.mncounty.org/events/event_list.asp

PROPERTY RECORDS INDUSTRY ASSOCIATION

PRIA Annual Conference August 22-25, 2016 Hotel JulienDubuque, IA

Winter SymposiumFebruary 20-23, 2017Albuquerque MarriottAlbuquerque, NM

Annual ConferenceAugust 28-31, 2017Sheraton Nashville DowntownNashville, TN

http://www.pria.us/i4a/pages/index.cfm?pageid=3786

METRO PREP

MN PREP - Metro Chapter10:00 am to NoonFrance Place, 3601 Minnesota Dr. #175 Bloomington, MNThursday, September 8, 2016Thursday, November 10, 2016

http://www.mlta.org

MINNESOTA REAL ESTATE INSTITUTE

2016 Real Estate InstituteNovember 3-4, 2016Saint Paul RiverCentreREGISTER BY JULY 31 & SAVE $50https://www.minncle.org/

TITLEGRAM 2016-02 • 7

ALTA Unveils New Conference for 2017The current landscape has forced title professionals to embrace a strategic shift—moving from thinking about their businesses through a business-to-business lens to thinking about their businesses through a business-to-consumer lens. To help title professionals grow and succeed, ALTA announced that in 2017 the new conference ALTA SPRINGBOARD will replace the Business Strategies Conference. ALTA SPRINGBOARD will be held March 8-10 at the Omni Fort Worth in Fort Worth, Texas.

http://www.alta.org/news/news.cfm?newsID=30731&utm_source=hero&utm_medium=website&utm_content=hero_image&utm_campaign=SPRINGBOARD

ALTA 2016 ConventionOut of Many, OneOctober 4-7, 2016Fairmont Scottsdale Princess Scottsdale, AZhttp://meetings.alta.org/annual/@ALTAonline • #ALTA16

Compliance Webinar: Primer on RESPA’s Anti-kickback ProhibitionRecent enforcement actions and statements by regulators are changing the way that the industry understands section 8(c) of RESPA. The closely watched PHH case before the federal appeals court in Washington, D.C., could significantly affect what’s deemed a kickback. To learn about how exceptions work in real life and their relationship to RESPA’s anti-kickback prohibition, register for ALTA’s next compliance webinar, which will be held from 1:00-2:00 p.m. ET, Wednesday, Aug. 10. Must be logged in.

http://www.alta.org/index.cfm

ALTA Board Approves Several Changes - Public Comments Accepted Through July 29ALTA Board Approves Recommendations to Adopt, Revise, Decertify FormsThe ALTA® Board of Governors approved recommendations to adopt, revise, and decertify forms during a meeting on June 9, 2016. These forms are currently in an industry comment period and are subject to change.

The forms may be downloaded for review at www.alta.org/forms. Upon review of comments and final publication on or about August 1, 2016, any prior version(s) of revised forms which may exist will be moved to the archives of the ALTA Policy Forms collection upon final publication of revisions.

http://www.alta.org/forms/formsnews.cfm

ALTA Board Approves Best Practices Maturity Model to Help Measure ComplianceALTA’s Board of Governors approved the development of a Best Practices Maturity Model to help companies demonstrate the progress made toward implementation of ALTA’s Title Insurance and Settlement Company Best Practices.

http://www.alta.org/news/news.cfm?newsID=31639

ALTA Board Approves Modifications to Best PracticesALTA’s Board of Governors on June 9 approved proposed changes to the association’s “Title Insurance and Settlement Company Best Practices” to better reflect market needs and trends.

“ALTA’s Best Practices Framework is the clear choice among title and settlement companies to help develop policies and procedures that protect consumers, promote quality service, provide for ongoing employee training, and meet legal and market requirements,” said Michelle Korsmo, ALTA’s chief executive officer. “The Best Practices also have become the blueprint used by many lenders to meet third-party vendor management regulatory requirements. Since initially publishing the Best Practices Framework more than three years ago, ALTA has engaged in discussions with stakeholders to continually improve Best Practices and meet market demand.”

http://www.alta.org/news/news.cfm?newsID=31640 Full articles are available on page 20.

Title Action Network (TAN)The Consumer Financial Protection Bureau (CFPB) will be considering changes to the TILA-RESPA Integrated Disclosure (TRID) rule later this summer. The Title Action Network needs

your help to ensure its voice is stronger than ever as we work to convince the CFPB to fix portions of TRID. Join now. Joining is both easy and free!

http://www.titleactionnetwork.com/

TITLEGRAM 2016-02 • 8

PRIA Publishes Best Practices for Certifying Copies for Land RecordsSource: American Land Title Association (ALTA)May 5, 2016

The Board of Directors of the Property Records Industry Association (PRIA) in April approved publication of a paper titled “Best Practices for Certifying Copies for Land Records.”

The paper focuses on best practices for certified copies for land records. PRIA acknowledges that there may be additional and different issues related to certifying documents that are contained in other government offices. The best practices are limited to the recording of documents.

“It is incredibly important to be engaged in PRIA’s efforts to promote understanding and uniformity in recording,” said Brian Ernissee, director of document completion at Nationwide Title Clearing and co-chair of PRIA’s Certified Copies Work Group. “These Best Practices are the result of PRIA members from both the government and business sectors bringing their collective knowledge and experience to the wider discussion of how best to advise stakeholders on practices that can work for everyone.”

Joyce Watts, clerk-register for Allegan Co, Mich., and government sector co-chair of the Certified Copies Work Group, added, “Having clear, concise standards for production of certified copies is beneficial to recorders PRIA is recognized as the leading resource for the property records industry. In providing assurance the copies they produce for customers will address title clearance issues. Standardization of practices benefits our offices, our records and our customers.”

PRIA’s Best Practices for Certifying Copies

1. A certified copy should contain a certification stamp that includes the following attributes to indicate that it is indeed certified:• Signature of authorized person in the Recorder’s Office• Jurisdiction seal• Jurisdiction and state identification• Date of certification• Number of pages the document contains• Certification statement, for example, “I hereby affirm that this document is a true certified copy of the document

recorded in the land records of ABC County…”2. Only entire or complete documents should be certified.3. The certification stamp or raised seal should be placed on the last page of the document.4. The certification mark should be distinct and easily identifiable from the document text.5. Jurisdictions are encouraged to provide a method to verify that the certification is valid.

While statutory language could not be found to define the content of a certification, PRIA acknowledged that the practice of making and sending certified copies is well-established. PRIA said the paper exists to define content and best practices so that movement towards a national consistency will evolve.

http://www.alta.org/news/news.cfm?newsID=31151

Paperhttp://www.pria.us/files/resource_library_files/Real_Property_Law_Legal_Issues/Best%20Practices%20for%20Certifying%20Copies_FINAL.pdf

Revised PRIA Glossary and Acronyms

http://www.pria.us/files/resource_library_files/Governance_Documents/PRIA%20Glossary_Acronyms.pdf

TITLEGRAM 2016-02 • 9

ALTA Helps Pressure NAIC to Open Dialogue About State Model Cyber LawSource: American Land Title Association (ALTA)April 21, 2016

Responding to feedback and pressure from ALTA and state regulators, the commissioner of the National Association of Insurance Commissioners has agreed to hold an extended in-person discussion to address concerns about the NAIC’s proposed state model cybersecurity law.

In March, ALTA submitted a letter to the NAIC’s Cybersecurity Task Force outlining concerns with the group’s draft Insurance Data Security Model Law. ALTA encouraged the NAIC to work with state attorneys general and consider whether states will pass two different data security laws: one for insurance and a separate one for all other businesses. ALTA suggested that the NAIC host an open conversation about data security that facilitates consensus about our shared goals and pain points. Finally, ALTA expressed concern that the proposal does not adequately take scalability into account. ALTA believes that an insurance-specific data security law could conflict with other state and federal data security laws, making it impossible for title and settlement agents to comply with all their legal and contractual obligations.

“We are concerned that the Preliminary Working and Discussion Draft would not establish a single standard for consumer protection, which is likely to create confusion and conflict among various regulators, state attorneys general, courts, industry and consumers,” Justin Ailes, ALTA’s vice president of government and regulatory affairs, wrote in the letter. “As currently written, the Preliminary Working and Discussion Draft appears to take the most severe penalties, add an extensive additional regulatory burden and private rights of action under state regulation. No state today approaches data security in this manner.”

ALTA’s letter includes a section-by-section review of the Insurance Data Security Model Law draft.

As it continues to consider a standard for data security and investigation and notification of a breach of data security, ALTA encourages the NAIC to consult existing state and federal requirements that licensees are already required to follow.

“It may also be prudent for the NAIC to engage with and solicit comment about the Preliminary Working and Discussion Draft from state and federal regulators including state Attorneys General, the Federal Trade Commission (FTC), and Consumer Financial Protection Bureau (CFPB),” according to Ailes.

Interestingly, a new report from SecurityScorecard shows that U.S. federal, state and local government agencies rank in last place in cybersecurity when compared against 17 major private industries, including financial services, retail and health care.

The analysis measured the relative security health of government and industries across 10 categories, including vulnerability to malware infections, exposure rates of passwords and susceptibility to social engineering, such as an employee using corporate account information on a public social network.

ALTA, through its Liaison Committee with the NAIC, will continue to work with the task force to improve the draft model act. If you have any questions, email Ailes at jailes@alta.org.

Letter: http://www.alta.org/file.cfm?code=j9g3x5http://www.alta.org/news/news.cfm?newsID=31005

SecurityScorecard 2016 U.S. Government Cybersecurity ReportSecurityScorecard provides the most accurate benchmark of security risk across the entire business ecosystem. The cloud platform helps enterprises gain operational command of the security posture for themselves and across all their partners and vendors. It offers a breadth and depth of critical risk factors not available from any other service provider and in a completely self-service and automated tool. It’s based on the ThreatMarket™ data engine which collects over 30 million daily security risk signals from the entire Internet. SecurityScorecard was founded in 2013 by two former Chief Information Security Officers, Dr. Aleksandr Yampolskiy and Sam Kassoumeh. It is made up of veteran security researchers, cryptographers, data scientists, and software engineers. The company

is privately held with headquarters in New York City. Security Scorecard investors include Sequoia Capital, Evolution Equity Partners, Boldstart Ventures, and others.

https://cdn2.hubspot.net/hubfs/533449/SecurityScorecard_2016_Govt_Cybersecurity_Report.pdf?t=1460656738045

Read the Draft of New Cybersecurity Model Law

http://www.dmclaw.com/files/publications/NAIC-Cybersecurity-

Task-Force-Model-Law.pdf

TITLEGRAM 2016-02 • 10

HUD Adopts New ALTA Survey Standards into Requirements for Multi-family LoansSource: American Land Title Association (ALTA)April 7, 2016

The U.S. Department of Housing and Urban Development has modified its multi-family survey instructions incorporating the new 2016 Minimum Standard Detail Requirements for ALTA/NSPS Land Title Surveys. The new ALTA/NSPS Land Title Survey Standards went into effect Feb. 23.

Download a copy of the new standards as well as a redline version showing the changes from the NSPS website at http://www.nsps.us.com/?page=ALTAACSMStandards&hhSearchTerms=%222016+and+Standards%22

Click here to view HUD’s new Survey Instructions and Surveyor’s Report.

HUD recommends the following transition and implementation guidance:

If you are under contract prior to Feb. 23, you could use the 2011 Standards—even if the survey is not completed until after Feb. 23.

• If you are under contract prior to Feb. 23 and you know the survey will not be completed until after Feb. 23, it would be logical, but not required to go ahead and contract to use the 2016 Standards.

• “Updates” must be to the 2016 Standards if they are contracted after Feb. 23. The only exception to that might be if you contracted to do a 2011 survey before Feb. 23 and, for some reason, the closing was delayed so long that they wanted the survey “updated” before closing. In that case, you might be able to do that update to the 2011 Standards; not for a new conveyance but for the delayed conveyance.

• If a new construction or sub-rehab project has a 2011 survey performed for initial closing, will the final as-built survey performed in connection with the final closing a year or two later upon completion of construction also fall under the 2011 Standards, or the 2016 Standards? - Under that scenario—a year or two later—the final survey would need to meet the 2016 Standards. The surveyor

should know, however, that they will need to consider—in particular—the changes to Table A between 2011 and 2016. - It might be able to posit that if the final survey is a logical extension of the initial survey AND the timeframe between

initial and final survey is short, one could continue with 2011, but if we don’t draw a line, it just goes on and on.

HUD will further consider the 2016 ALTA/NSPS survey requirements when the Multi-family closing documents undergo the OMB/PRA renewal process within the year. HUD will determine at this time whether or not to make substantive changes to the HUD-91073M form as a result of the new ALTA/NSPS document.

According to Gary Kent, director of integrated services at Schneider Corp. and chair of the ALTA Liaison Committee with the National Society of Professional Surveyors, HUD now allows participants to use the Section 7 ALTA/NSPS certification rather than its own.

http://www.alta.org/news/news.cfm?newsID=30883

NAIC Cybersecurity Task ForceThe mission of the Cybersecurity (EX) Task Force is to consider issues concerning cybersecurity as they pertain to the role of state insurance regulators.

Ongoing Support of NAIC Programs, Products or Services

1. The Cybersecurity (EX) Task Force will:

A. Monitor developments in the area of cybersecurity.B. Advise, report and make recommendations to the Executive (EX) Committee on cybersecurity issues.C. Coordinate activities with NAIC standing committees and their task forces and working groups regarding cyberse-

curity issues.D. Review the NAIC Insurance and Privacy Protection Model Act (#670); the Privacy of Consumer Financial and Health

Information Regulation (#672); the Standards for Safeguarding Consumer Information Model Regulation (#673); and the Insurance Fraud Prevention Model Act (#680) and make recommendations to the Executive (EX) Committee.

E. Represent the NAIC and communicate with other entities/groups, including the sharing of information as may be appropriate, on cybersecurity issues.

F. Perform such other tasks as may be assigned by the Executive (EX) Committee relating to the area of cybersecurity.

http://www.naic.org/committees_ex_cybersecurity_tf.htm

TITLEGRAM 2016-02 • 11

Task Force Members - Secretaries of State

Co-Chair: Tom Schedler, Louisiana Secretary of StateCo-Chair: Alison Lundergan Grimes, Kentucky Secretary of StateHon. Mark Martin, Arkansas Secretary of StateHon. Connie Lawson, Indiana Secretary of StateHon. Paul Pate, Iowa Secretary of State (added 04/05/16)Hon. Matt Dunlap, Maine Secretary of StateHon. John Wobensmith, Maryland Secretary of State Hon. Steve Simon, Minnesota Secretary of StateHon. Linda McCulloch, Montana Secretary of StateHon. Elaine Marshall, North Carolina Secretary of StateHon. Al Jaeger, North Dakota Secretary of StateHon. Pedro Cortés, Pennsylvania Secretary of StateHon. Jim Condos, Vermont Secretary of State

Notary Public Administrators/Deputy Secretaries of State

Patricia Viverto, Office of the Arizona Secretary of StateDanielle Fusco, Office of the Arkansas Secretary of StateBetsy Bogart, Office of the California Secretary of StateAlicia Stewart, Office of the California Secretary of StateRick Geisenberger, Office of the Delaware Secretary of StateKyle Pritchard, Office of the Delaware Secretary of StateMike Smith, Georgia Superior Court Clerks’ Cooperative AuthorityMallory Long, Office of the Indiana Secretary of StateTodd Henderson, Office of the Iowa Secretary of State (added 04/05/16)

Lindsay Hughes Thurston, Office of the Kentucky Secretary of StateCarla Bonaventure, Office of the Louisiana Secretary of StateCathy Beaudoin, Office of the Maine Secretary of StateLuis Borunda, Office of the Maryland Secretary of StatePeggy Pratt, Office of the Maryland Secretary of StateKathy Smith, Office of the Maryland Secretary of StateKim Smith, Office of the Maryland Secretary of StateBert Black, Office of the Minnesota Secretary of StateLori Hamm, Office of the Montana Secretary of StateHaley Haynes, Office of the North Carolina Secretary of StateOzie Stallworth, Office of the North Carolina Secretary of StatePeter Threlkel, Office of the Oregon Secretary of StateMaureen Ewing, Office of the Rhode Island Secretary of StateChris Winters, Office of the Vermont Secretary of StateShelly Noyes, Office of the Washington Secretary of StateNancy Skewis, Office of the Washington Secretary of State

Private Sector Advisors

Kathleen Butler, American Society of NotariesBill Anderson, National Notary AssociationAdam Pase, NotarizeMarc Aronson, Pennsylvania Association of NotariesPem Guerry, SignixMark Ladd, SimplifilePenny Reed, Wells FargoBob Rice, World Wide NotaryKal Taburra, American Association of Notaries (added 04/05/16)

National Association of Secretaries of State Launches Remote Notarization Task ForceApril 19, 2016

Secretaries of State are joining forces with state notary professionals and private-sector notarization experts to announce the formation of the National Association of Secretaries of State (NASS) Remote Notarization Task Force. The task force, which includes representation from 19 states, is dedicated to promoting a greater understanding of the issues and policies surrounding the adoption of remote/video notarizations amongst states.

The NASS Remote Notarization Task Force is dedicated to promoting a greater understanding of the issues and policies surrounding remote/video notarizations amongst states. The task force will review technologies that facilitate remote notarizations, track state activity and develop possible proposals for NASS consideration.

Membership is open to Secretaries of State and members of the Notary Public Administrators (NPA) Section of NASS. NASS Corporate Affiliates will provide input and advice on technologies, training and trends.

Understanding the IssueAs digital technology evolves, the Uniform Law Commission (ULC) and others are reconsidering the long-held notarial principle that “personal appearance” requires physical presence.

Some jurisdictions now allow for a person to appear before a notary using audio/video applications, also known as remote notarization. Virginia allows for remote approaches in electronic notarizations, while Montana allows for remote notarization in conducting both traditional and electronic notarizations.

RULONA Revisions: The long-held physical appearance requirement currently reflected in model notarization laws is under reconsideration by the ULC, as it considers an amendment to the Revised Uniform Law on Notarial Acts (RULONA). The amendment allows U.S. citizens living overseas to use remote methods for both traditional and electronic notarizations. It will be considered in summer 2016.

eNotarization Standards: NASS National Electronic Notarization Standards are set to expire in July 2016. In addition to the merits of physical presence versus virtual presence, state policymakers need to address the potential validity and interstate recognition of remotely e-notarized documents.

Questions/Contact Leslie Reynolds, NASS Executive Director | 202-624-3525http://www.nass.org/nass-initiatives/nass-remote-notarization-task-force/

TITLEGRAM 2016-02 • 12

Here are the finer details about the map below:

• eNotarization face to face only: AR, CA, CO, FL, IA, MD, MI, MN, NE (eff 7/1/17), NC, OH, OR, PA, TX, UT, WI, WV.

• eNotarization face to face, and long distance: MT and VA.

• eNotarization for real property only: NY and WA.

The actual number of eNotarizations being performed in any given state are not being tracked. Inclusion on the map only indicates the state’s position on whether eNotarizations may be performed in that state.

For example, I think Oregon only has 5 eNotaries at the moment. Minnesota informed me they have had 2,000+ notaries public who have at least registered with the state’s process, but that is not an indication that 2,000+ notaries are eNotarizing. I have the same thoughts about North Carolina. They have informed me that they have had 1,000+ notaries public take the required education, but I suspect, based on a previous survey of the approved vendors a few years back, than in a given week probably only 100 notaries, or less, are really doing something as electronically enabled notaries pubic.

In these states eNotarization should be taking place, but…

AZ: has two notary laws, one for the paper notary and one for eNotary. eNotary requires PKI. There are no approved vendors selling PKI certificates to notaries public in AZ.

CT, HI & VT: have told me on the phone during one of my many surveys that they would accept the fact that UETA would permit eNotarization in their state. Other callers may not get the same answer. It has been suggested to me that CT, HI, VT & DE should be ‘red’ (no eNotarization) on the map. Check with the states’ appointing authorities before moving ahead with eNotarization in these states.

DE: has a law that permits the appointing of eNotaries all over the country. They have announced a strategic alliance with a program administrator, but as of the date of this communication the state is still not issuing electronic notary commissions. A notary cannot apply to become an electronic notary at this time, according to the state website.

IN: had announced earlier this year in their online notary handbook that both face-to-face and remote notarization were approved. However, they have since revised their handbook and now state:

“Indiana law allows certain transactions to be conducted electronically if all parties to a transaction agree to the arrangements provided. A party may refuse to conduct a transaction electronically and may not be forced to do so. Indiana Code 26-2-8-110 (see appendix IV) provides:

If a law requires that a signature be notarized, the requirement is satisfied with respect to an electronic signature if an electronic record includes, in addition to the electronic signature to be notarized, the electronic signature of a notary public together with all other information required to be included in a notarization by other applicable law.

Status of eNotarization in the United StatesMay 31, 2016Compiled by Marc L. Aronson, Pennsylvania Association of Notaries

TITLEGRAM 2016-02 • 13

Law on Notarial Acts, Revised

The Revised Uniform Law on Notarial Acts (RULONA) is an update of the 1982 act of the same name. The revision updates the provisions on notary responsibilities, electronic recording, interstate recognition, and remedies. The revision adapts the prior law to accommodate the societal and technological changes that have occurred in the past 30 years and is designed to make the Act more responsive to current transactions and continuing technological change.

Final Act• Final Act 2010 (PDF)• Final Act 2010 - No Comments (DOC)

Legislative Information Kit• Legislative Fact Sheet• Act Summary• Why States Should Adopt• Support Letters - PRIA | NNA | ASN• Download an Enactment Kit

Enactment Map

http://uniformlaws.org/Act.aspx?title=Law%20on%20Notarial%20Acts,%20Revised

Diversity of Thought, Uniformity of Law

The Uniform Law Commission (ULC, also known as the National Conference of Commissioners on Uniform State Laws), established in 1892, provides states with non-partisan, well-conceived and well-drafted legislation that brings clarity and stability to critical areas of state statutory law.

ULC members must be lawyers, qualified to practice law. They are practicing lawyers, judges, legislators and legislative staff and law professors, who have been appointed by state governments as well as the District of Columbia, Puerto Rico and the U.S. Virgin Islands to research, draft and promote enactment of uniform state laws in areas of state law where uniformity is desirable and practical.

http://www.uniformlaws.org/Narrative.aspx?title=About%20the%20ULC

The Indiana Secretary of State’s Office does not administer the Uniform Electronic Transactions Act statute and the office is not authorized to provide legal advice. Notaries are advised to discuss questions or concerns about utilizing new technologies with legal counsel.”

KS: has a requirement to purchase a PKI solution from the state. There are perhaps 5 to 10 notaries using this process.

LA: the notary here is both the same, and different, as their foundational paper notary laws are based on French law (although they have passed UETA). Louisiana has a study committee on eSignature and eNotary. They anticipate reporting their findings in February 2017.

MI, OH & WI: will not provide their notaries public with a firm yes or no as to eNotarization. They say that while they appoint notaries, they don’t give legal opinions and those individuals who want to be eNotaries should speak with their local legal representative for advice on this subject. I have been advised by a source that eNotarization is taking place in Wisconsin in the banking environment.

ND: has passed RULONA but has not written regulations permitting eNotarization yet.

NM: has regulations in place. No one can become a new eNotary in NM because there is no approved mandatory education vendor to provide the necessary eNotarization education.

NV: has a notary law which permits eNotary, but needs to write regulations. They may have enabling regulations in place in 2017.

AK, AL, GA, ID, IN, IL, KY, MA, ME, MO, MS, NE, NH, NJ, NY, OK, SC, SD, TN, WA & WY do not authorize their notaries public to be electronically enabled notaries public (with the NY and WA exceptions for real estate only) based on my yearly phone calls.

Compiled by Marc L. AronsonPennsylvania Association of Notariesmaronson@notary.org800-944-8790 Ext. 113

http://www.nass.org/component/docman/?task=doc_download&gid=1791&Itemid=

TITLEGRAM 2016-02 • 14

Some of the Notary Public Administrators Section’s objectives include:

• Gathering, exchanging and disseminating facts, information, and ideas relating to notaries public, the administration of commissioning/licensing programs, the regulation of notaries public, and authentication programs

• Increasing knowledge of notary law among NPA members and within the general public

Meetings of the NPA Section are held once each calendar year in conjunction with the NASS annual summer conference.

The Notary Public Administrators Section of the National Association of Secretaries of State

State InformationThe following content will assist NPAs wishing to review other states’ notary public requirements.

State Notary Requirements• State-Specific Notary Requirements MASTER Table Rev.

July 2015 - Download Table

Education and/or Exam• List of states with mandatory education and/or exam

requirements Rev. July 2016 - Download Table

Journal/Recordbook• List of states with journal/recordbook requirements

Rev. July 2015 - Download Table

Fees• State Notary Allowed Fees - Quick Reference Rev.

August 2015 - Download Table

Electronic NotarizationNASS National Electronic Notarization Standards– Harmonizing Technology and the Fundamental Tenets of Notarial Acts

The NASS Standards provide a thoughtful blueprint for reliable and trusted technology-assisted notarial acts, while preserving the fundamental principles that have made notarization an essential element of document execution for centuries.

more

Notarization’s Fundamental Tenets Are Preserved in Electronic Notarial Acts

The assurances provided by the fundamental tenets of traditional “paper” notarization are so important that most U.S. states actively enabling or allowing electronic notarization require strict adherence to them. These tenets are strongly upheld and advanced by the National Electronic Notarization Standards, promulgated by the National Association of Secretaries of State.

more

NASS National Electronic Notarization Standards

With the purpose of promoting secure and feasible implementation of electronic notarization, the National Association of Secretaries of State created standards for electronic notarization in 2006. These standards, reaffirmed in 2011, do not specify a particular technology. They are offered for voluntary adoption by each state. States may opt to adopt the full standards, or selected parts.

View the standards

http://www.npa-section.com/electronicnotarization.htmlhttp://www.npa-section.com/stateinformation.html

TITLEGRAM 2016-02 • 15

Notary Public Administrators’ Handbook on Apostilles and Authentications©, Third EditionA comprehensive guide for U.S. competent authorities on the issuance of Apostilles and authentications. INCLUDES the NPA Section’s Apostille Issuance Guidelines, Version 1.0, July 2013. Use this Handbook to:

• Conform with basic requirements of the Hague Apostille Convention, as well as Conclusions and Recommendations;

• Reduce intended recipients’ rejections of U.S. state-issued Apostilles due to lack of consistency in their format, design and circumstances of issuance;

• Improve security of the Apostille to reduce misuse and abuse.

NPA Section Apostille Issuance Guidelines©, Version 1.0, July 2013An authoritative reference document, addressing frequently encountered scenarios and challenges faced by U.S. competent authorities. Provides concise recommendations (attach, reject, sanction notary) for a wide array of problematic issuance requests.

July 2010 NPA Section ResolutionTo promote uniformity in the format, design and affixation of Apostilles.

View a sample of Rhode Island’s allonge, which complies with the NPA Resolution.

The Apostille Section of the Hague Conference on Private International Law maintains the authoritative list of countries (“contracting states”) that have joined the Hague Apostille Convention.

• View the list of Contracting States (“Status Table”)• How to read the Status Table

From the Apostille Section of the Hague Conference on Private International Law:• The ABCs of Apostilles - an informational brochure for users of Apostilles.• How to Join and Implement the Hague Apostille Convention – a brief guide for potential and new

contracting states.• Apostille Handbook – a comprehensive guide to assist competent authorities.

Also:

Adoptions—Russia/U.S. Confirmation Letters Issue. Issuance of such confirmation letters is contrary to the Apostille Convention; please see the documents below.

• Letter to Russian Court Tomsk Oblast - Feb 2011• Letter to US Adoption Agency RE: Confirmation Letters for Russia - Jan 2011• Letter to Russian Court RE: Confirmation Letters - Jan 2011• Letter CB to US Adoption Agency RE: Procedure - Oct 2010

Sovereign GroupsShared Document Samples—California Apostille Sample; “Outside the Box” Language

http://www.npa-section.com/sovereigngroups.html

Apostles

ResourcesU.S. State Department, Office of Authenticationshttp://www.state.gov/m/a/auth/

http://www.npa-section.com/apostilleauthentications.html

TITLEGRAM 2016-02 • 16

Pass it OnFederal Trade Commission’s (FTC)

The “Pass it On” campaign will help you talk to friends, family, and loved ones about avoiding common scams. You may know about scams like identity theft, imposters, and charity fraud – but chances are, you know someone who doesn’t. There are many ways to use “Pass it On” to share what you know, like writing an article, giving a presentation, or distributing the materials in your community.

http://www.ftc.gov/passiton

Money Smart for Older AdultsConsumer Finance Protection Bureau (CFPB) / Federal Deposit Insurance Corporation (FDIC)

Money Smart for Older Adults (MSOA) is an instructor-led training developed jointly by FDIC and CFPB. The module provides awareness among older adults and their caregivers on how to prevent elder financial exploitation and to encourage advance planning and informed financial decision-making. FDIC and CFPB invite stakeholders to order and begin teaching what elder financial exploitation is and why older adults are at risk. MSOA is a tool for bank-community partnerships. For example, bank staff could deliver this information in collaboration with providers of senior services or adult protective services.

There are seven segments covering the following topics:

• Common Types of Elder Financial Exploitation• Scams Targeting Veterans• Identity Theft• Medical Identity Theft• Scams that Target Homeowners• Planning for Unexpected Life Events• How to Be Financially Prepared for Disasters

The instructor-led curriculum is available as a download. Print copies of Money Smart for Older Adults may be ordered from the Consumer Finance Protection Bureau.https://www.fdic.gov/consumers/consumer/moneysmart/olderadult.html

Print copies of Money Smart for Older Adults may be ordered from the Consumer Finance Protection Bureau.http://promotions.usa.gov/cfpbpubs.html

Resource Guidehttp://files.consumerfinance.gov/f/201306_cfpb_msoa-participant-guide.pdf

Training module for instructorshttps://www.fdic.gov/consumers/consumer/moneysmart/OlderAdult.html

World Elder Abuse Awareness DayJune 15 is World Elder Abuse Awareness Day (WEAAD).

World Elder Abuse Awareness Day (WEAAD) was launched on June

15, 2006 by the International Network for the Prevention of Elder Abuse and the World Health Organization at the United Nations. This annual day of heightened recognition provides an opportunity to talk about preventing, identifying, and responding to elder abuse and financial exploitation.

The purpose of WEAAD is to provide an opportunity for communities around the world to promote a better understanding of abuse and neglect of older persons by raising awareness of the cultural, social, economic and demographic processes affecting elder abuse and neglect.

In addition, WEAAD is in support of the United Nations International Plan of Action acknowledging the significance of elder abuse as a public health and human rights issue. WEAAD serves as a call-to-action for individuals, organizations, and communities to raise awareness about elder abuse, neglect, and exploitation.

Whether you are an older adult, care for one, or simply know someone who is a senior, you can do something to prevent elder financial abuse. Several helpful resources are available for financial caregivers and/or older elders unable to handle their finances.

WEAAD Links:

Department of Health and Human Services, National Center on Elder Abuse, Administration on Aginghttp://www.ncea.aoa.gov/Get_Involved/Awareness/WEAAD/index.aspx

WEAAD Microsite - Administration for Community Livinghttp://www.acl.gov/NewsRoom/Observances/WEAAD/index.aspx

International Network for the Prevention of Elder Abuse (INPEA)http://www.inpea.net/

Resources for those caring for the finances of seniors and other vulnerable adults

TITLEGRAM 2016-02 • 17

Look for these common signs of financial exploitation• You think some money or property is missing.• The elder says that some money or property is

missing.• You notice sudden changes in the elder’s spending

or savings. For example, he/she: - Takes out lots of money from the bank

without explanation; - Tries to wire large amounts of money; - Uses the ATM a lot; - Is not able to pay bills that are usually paid; - Buys things or services that don’t seem

necessary; - Puts names on bank or other accounts that

you do not recognize or that she is unwilling or unable to explain;

- Does not get bank statements or bills; Makes new or unusual gifts to family or others, such as a “new best friend”;

- Changes beneficiaries of a will, life insurance, or retirement funds; or Has a caregiver, friend, or relative who suddenly begins handling her money.

• An elder indicates he/she is afraid or seems afraid of a relative, caregiver, or friend.

• A relative, caregiver, friend, or someone else keeps the elder from having visitors or phone calls, does not let her speak for herself, or seems to be controlling her decisions.

What can you do if you suspect an elder has been exploited?• Call the emergency 911 number if the elder is in

immediate danger.• Call local adult protective services or the police or

sheriff. You may be required by law to do this.• Alert Martina’s bank or credit card company.• Call the local prosecutor or state attorney general.• Call the long-term care ombudsman’s office or the

state Medicaid fraud control unit if the elder is in a nursing home or assisted living.

• Consider talking to a lawyer about protecting the elder from more exploitation or getting back money or property taken from her.

• Each agency or professional has a different role, so you may need to call more than one.

Tips from the Consumer Financial Protection Bureau:excerpted from the CFPB’s Help for Agents Under a Power of Attorney guide

FTC’s advice on spotting elder financial abusehttps://www.consumer.ftc.gov/blog/spotting-elder-

financial-abuse

Managing Someone Else’s Money GuidesConsumer Finance Protection Bureau (CFPB)

Millions of Americans are managing money or property for a loved one who is unable to pay bills or make financial decisions. To help financial caregivers, the CFPB prepared guides for managing someone else’s money in four different fiduciary capacities:

1. Agents under a powers of attorney - for people who have been named in a power of attorney to make decisions about money and property for someone else.

2. Court-appointed guardians - for those who have been appointed by a court to be guardians or conservators of property, giving them the duty and the power to make decisions on someone’s behalf.

3. Trustees - for those who have been named as trustees under revocable living trusts. In these cases, ownership of some or all money and property has been transferred to a trust and, as a result, the person named as a trustee has the power to make decisions about what is in the trust.

4. Government fiduciaries - for those who have been appointed by a government agency to manage income benefits, such as Social Security or veteran’s assistance, for someone.

Each guide contains information on the fiduciary’s responsibilities and tips on how to spot financial exploitation and avoid scams. Also, each guide includes a “Where to go for help” section with a listing of relevant agencies and service providers.

STATE-SPECIFIC GUIDESBecause people’s powers and duties as a fiduciary vary from state to state, the CFPB also created six sets of state-specific guides. These state guides provide information about the state’s unique laws and practices,

as well as state-specific resources. To make it easy for legal and aging experts in other states to adapt the guides for their states, the CFPB developed Microsoft Word templates for each guide as well as a set of tips for creating state-specific versions.

ORDER OR DOWNLOAD THE GUIDES• Download the guide as a PDF• Order a free printed copy through GSA• Order these materials in bulk at promotions.usa.gov

http://www.consumerfinance.gov/managing-someone-elses-money/

TITLEGRAM 2016-02 • 18

• Be wary of fraudulent phone calls and emails. Never give out your social security number, credit card information or bank account details over the phone. Do not reply to unsolicited emails requesting personal information — even if they claim to be from someone you know.

• Think twice before sharing personal and financial information online. If a website seems fishy, proceed with caution. A secure website’s URL should begin with “https” rather than “http.” The “s” stands for secure.

• Review your credit report at least once a year. You can check your credit report for free. Make sure the information is accurate, complete and up-to-date. Look for anything that seems suspicious and follow up with any fraudulent activity.

• Learn the policy terms for your banks and credit card companies. These organizations typically offer fraud protection. Victims of identity theft may be eligible for free credit freeze services as provided by each state’s security freeze law. Get information specific to where you live.

• Find out if your homeowners policy offers identify theft protection. Before signing up for additional coverage, weigh costs vs. risks. Coverage may not refund what was lost, but instead cover the costs associated with restoring a stolen identity.

• Know who is liable. Through the “sharing economy,” renting a stranger’s home, car, boat or other personal property is easier than ever and can sometimes be a good option. Before using a sharing platform, such AirBnB or VRBO, understand the insurance implications.

The National Association of Insurance Commissioners (NAIC)’s Insure U - Get Smart About Insurance program assists consumers with information about insurance issues. It is designed to help insurance consumers as their lives and needs change, and to educate them about how to avoid being scammed. The program also reminds consumers of the tools and resources provided them by state insurance regulators.

Since its 2006 launch, Insure U has featured public service announcements (PSA), consumer alerts, news releases, mobile apps and games, along with integrated social media campaigns, in order to help consumers understand difficult topics.

NAIC recently partnered with award-winning entertainer Rita Moreno to promote its Insure U consumer education campaign. Rita lends her voice to a nationally-distributed radio public service announcement (in English and Spanish) and offers a senior’s perspective on modern advancements such as social media and the sharing economy in a video series entitled “Life Unscripted,” which can be seen on Insure U.

Key messages:• Sharing is caring. If your plans and policies are a mystery to your spouse or partner, do not wait any longer to share. An

open exchange of information is vital to ensure you are both prepared if one of you is unable to provide information.• Ask the experts. When reviewing your plans and policies, do not make assumptions. A call to your state insurance

department can help clear up confusion about insurance policies and ensure you are not carrying more insurance than necessary, which may help save money and prevent fraud.

• Pass it on. Make sure your adult children understand your long-term care plans, life insurance policies, end-of-life wishes and the importance of planning ahead for their family.

http://www.insureuonline.org/

For unbiased tips and tools to help consumers understand their insurance options, visit www.insureuonline.org, NAIC’s award-winning online education resource. Consumers interested in insurance information specific to where they live can contact their state insurance commissioner.

NAIC’s Insure U Senior Education Campaign

• Ride with caution. State laws vary when it comes to ride-sharing services like Uber and Lyft. If a ride-sharing driver in your state has an accident, learn whose insurance covers damage and medical bills.

• Keep policies current. If you move in with your adult children, revisit your homeowners coverage to make sure your belongings are covered. Review your life insurance policy as your lifestyle changes.

• Ask an expert. If you are considering buying an annuity or long-term care insurance, make sure it’s the right product for you. If it seems too good to be true, it probably is. Contact your state insurance department if you suspect you have been a victim of deceptive sales practices.

• Have ‘the talk’ with your family. Make sure your loved ones fully understand your health coverage, long-term care plans, insurance policies and end-of-life wishes.

http://www.insureuonline.org/documents/10_tips_for_seniors.pdf

NAIC’s 10 Tips to Help Seniors Navigate the 21st Century

TITLEGRAM 2016-02 • 19

ALTA's Board of Directors recently approved several changes. Full articles appear on the following pages for your convenience.

Public comments are being accepted through July 29, 2016.

1. ALTA Board Approves Recommendations to Adopt, Revise, Decertify Forms2. ALTA Board Approves Best Practices Maturity Model to Help Measure Compliance3. ALTA Board Approves Modifications to Best Practices

TITLEGRAM 2016-02 • 20American Land Title Association (ALTA)

ALTA Board Approves Recommendations to Adopt, Revise, Decertify FormsThe ALTA® Board of Governors approved recommendations to adopt, revise, and decertify forms during a meeting on June 9, 2016. These forms are currently in an industry comment period and are subject to change. The public comment period is open until Friday, July 29, 2016.

The forms may be downloaded for review at www.alta.org/forms. Upon review of comments and final publication on or about August 1, 2016, any prior version(s) of revised forms which may exist will be moved to the archives of the ALTA Policy Forms collection upon final publication of revisions.

As always, the forms have been developed by the ALTA Forms Committee and approved by the ALTA Board. An opportunity to review and comment is extended to ALTA Members, Policy Forms Licensees, and industry customers before final publication. The forms, in general, are made available for customer convenience. The parties are free in each case to agree to different terms, and the use of these forms is voluntary, unless required by law. After publication, use of the Forms is restricted to ALTA licensees and ALTA members in good standing as of the date of use. Permission to reprint may be requested by contacting service@alta.org.

ALTA Endorsement 18.2-06 Multiple Tax Parcel – New Form

The existing ALTA Endorsement 18.1-06 (Multiple Tax Parcel) insures that (1) the identified tracts of land are assessed for real estate taxes under the listed tax identification numbers and do not include additional land, and (2) the easements, if any, described in Schedule A will not be cut off or disturbed by nonpayment of real estate taxes, assessments, or other charges on the servient estate by a governmental authority. However, in many transactions, the second coverage concerning easements is not applicable, because (1) there are no insured easements, (2) state law does not provide for priority of the easements over ad valorem taxes applicable to the servient estates, or (3) taxes are not paid through the year that the easements are recorded.

The new ALTA Endorsement 18.2 (Multiple Tax Parcel) removes the insurance regarding priority of easements over taxes applicable to the servient estate. Companies may continue to issue either Endorsement 18.1-06 or 18.2-06 on transactions involving multiple tracts based on company underwriting requirements.

ALTA Endorsement 23.1-06 Co-Insurance – Multiple Policies – New Form

The existing ALTA 23-06 Co-Insurance Endorsement is available for issuance if two or more co-insurers assume liability under one title insurance policy issued by the “Issuing Co-Insurer.” The ALTA 12-06 and 12.1-06 Aggregation Endorsements are also available for issuance if the title insurer aggregated liability under multiple policies that it issued on different tracts of land. However, the existing Co-Insurance Endorsement did not contemplate the apportionment of liability by a co-insurer if multiple title insurance policies are being issued on separate tracts of land.

The new Endorsement 23.1-06 (Co-Insurance – Multiple Policies), which can be issued with either Owner’s or Loan Policies, refers in paragraph 2 to the separate Aggregation Endorsement of the Co-Insurer and acknowledges that each Co-Insurer’s policy liability is aggregated with the liability of the Issuing Co-Insurer (the lead title insurer actually issuing the policy) if the Co-Insurer issues its own Aggregation Endorsement showing that Co-Insurer’s policy liability and Aggregate Amount of Insurance.

ALTA Commitment for Title Insurance – Revised Form

This product updates and consolidates the two 2006 versions of the ALTA Commitment forms: the ALTA Commitment Form (Adopted 6-17-06) and the ALTA Plain Language Commitment Form (Adopted 6-17-06). While those two forms are similar in substance, there are variations between them. The Forms Committee also recognized court decisions holding title insurers and agents liable for negligence or negligent misrepresentation in the preparation of title insurance commitments. The committee approached this particular issue by including a bold-face “Notice” at the top of the form and incorporating it into the Condition 3(a). The Notice specifically precludes third party liability and underscores that the procedures utilized to determine the insurability of the title are proprietary to the Company and create no liability to any person outside the terms of the Commitment. A Company may continue to separately provide abstract or search reports if it chooses.

In the revised Commitment, the committee

• clarified, in Condition 4.(a), the insurer’s right to amend the commitment for matters appearing in the public records at commitment date that are not included as a requirement or an exception;

• clarified, in Condition 5 – Limitations of Liability, the extent of the insurer’s liability for amending the commitment as permitted under Condition 4.(a) (which may encourage courts to uphold the limitations contained in the Notice);

TITLEGRAM 2016-02 • 21American Land Title Association (ALTA)

• incorporated the “gap” exception into the Conditions (Condition 4.(b)), as well as the option to include it in Schedule B, Part II ; and

• underscored the contractual nature of the business relationship with the Proposed Insured by requiring both a named Proposed Insured and a specified dollar amount of coverage.

The committee also took the opportunity to

• streamline the document, including revising headings and reordering and restating certain Conditions;

• add some definitions of terms included in the ALTA 2006 Owner’s and Loan policy forms for consistency;

• revise Schedule B, Part II to incorporate language usually added to exceptions for covenants and restrictions denying publication of an unlawful discriminatory matter;

• add, in the introductory paragraph to Schedule B, Part II, an exception for the terms and provisions of any lease or easement set forth in Schedule A as an estate or interest to be insured;

• add Subsection 6.(d) of the Conditions, stating that the deletion or modification of a Schedule B, Part II Exception does not create an obligation to provide coverage beyond the terms of the Commitment or policy;

• add Section 7 of the Conditions indicating that, if the Commitment is issued by an agent, the agent’s role is limited to the issuance of title insurance commitments and policies and the issuing agent is not the agent of the insurer for the purpose of providing closing or settlement services;

• add Section 8 of the Conditions indicating that, if a “proforma” policy is provided to a proposed insured, it does not reflect the status of title at the time that it is delivered and does not constitute a commitment to insure; and

• add an optional section preceding Schedule A to identify basic reference details of the transaction for which the Commitment is issued. Subsection 5.(f) of the Conditions states that the insurer has no liability for the content of this data.

Other changes to the form result in an updated, better-integrated document with clearer provisions and address issues relating to the delivery system (Transaction identification data, agent’s role, ALTA Universal ID, proforma policies). Returning to a single form of Commitment adds clarity for customers and helps avoid potential confusion in court interpretation of the insurer’s obligations under the contract.

Decertification of two existing commitment forms is scheduled for 12-31-2017:

• ALTA Commitment Form (6-17-06)

• ALTA Plain Language Commitment Form (6-17-06)

Forms To Be Decertified Effective 08-01-2016:ALTA Expanded Coverage Residential Loan Policy (12-02-2013) and ALTA Short Form Expanded Coverage Residential Loan Policy (04-02-2014)

The ALTA Board previously adopted the Expanded Coverage Residential Loan Policy (12-02-13) and ALTA Short Form Expanded Coverage Residential Loan Policy (04-02-2014). These 2013 and 2014 policies insured the priority of the Insured Mortgage over condominium and property owners’ assessment liens and did not offer the flexibility to differentiate coverage if state law or covenants established priority of the assessment liens for future assessments, in whole or in part.

The Board subsequently approved forms in 2015 which have effectively replaced the forms being proposed for decertification. Those forms are:

• ALTA Expanded Coverage Residential Loan Policy – Assessments Priority (04-02-2015)

• ALTA Short Form Expanded Coverage Residential Loan Policy – Assessments Priority (04-02-2015)

• ALTA Expanded Coverage Residential Loan Policy – Current Assessments (04-02-2015)

• ALTA Short Form Expanded Coverage Residential Loan Policy – Current Assessments (04-02-2015)

These subsequently approved forms provide alternatives for coverage with respect to assessment liens based on the actual provisions of state law and terms of covenants. The ALTA Expanded Coverage Residential Loan Policy – Assessments Priority (04-02-2015) insures the priority of the Insured Mortgage over assessment liens for future assessments, while the ALTA Expanded Coverage Residential Loan Policy – Current Assessments (04-02-2015) does not. Similarly, the Short Form versions of these policies provide analogous coverage.

TITLEGRAM 2016-02 • 22American Land Title Association (ALTA)

Given the adoption and general acceptance of these forms, there is no continuing need for the Expanded Coverage Residential Loan Policy (12-02-13) and ALTA Short Form Expanded Coverage Residential Loan Policy (04-02-2014).

Note that decertification means that the forms no longer appear in the ALTA Policy Forms collection. An individual title insurance company may decide to adopt an ALTA Policy Form and may also decide whether or not to continue using a decertified form in the marketplace. The ALTA Policy Forms are made available for customer convenience and the parties are free to agree to different terms, including the continued use of decertified forms, unless otherwise required by law.

Questions? Comments?

You may download and review the subject forms in the “Recent Forms Actions - For Comment” section in the Policy Forms Online. If you have comments or concerns, please forward them to the staff liaison for the Forms Committee, Kelly Romeo, at kromeo@alta.org.

http://www.alta.org/forms/formsnews.cfm

ALTA Board Approves Best Practices Maturity Model to Help Measure ComplianceALTA’s Board of Governors approved the development of a Best Practices Maturity Model to help companies demonstrate the progress made toward implementation of ALTA’s Title Insurance and Settlement Company Best Practices.

After nearly a year of discussions with members, lenders and assessment providers, ALTA’s Best Practices Executive and Internal Auditing committees created the Best Practices Maturity Model to help companies evaluate their policies and procedures to ease adoption of Best Practices.

“Maturity Models are used by lenders and regulators to analyze how companies operate and to measure a company’s policies against benchmark compliance levels,” said Michelle Korsmo, ALTA’s chief executive officer. “It provides companies with a valuable tool to help them determine where they are on the path of Best Practices compliance and how they can improve. Compliance with Best Practices is an ongoing process for ensuring policies and procedures are followed and updated, and errors are quickly detected.”

The Maturity Model includes five compliance categories ranging from ad hoc—meaning a company has not established any policies or procedures—to optimized—where a company is fully compliant with the Best Practices.

“The results are shown in a summary similar to a report card and provide a more streamlined view of a company’s compliance with Best Practices. This new tool also helps companies define what steps must be taken to reach the ‘optimized’ category of compliance,” Korsmo said. “The Maturity Model creates a working evaluation of the process necessary to achieve optimized compliance, giving ALTA members a better understanding and appreciation for the assessment process.”

The Maturity Model is under a public comment period until July 29. Send questions and comments to bestpractices@alta.org. After the review comment period ends, comments will be considered before the Maturity Model is finalized and becomes effective Oct. 7.

For more information about how to use this new tool, ALTA has provided a Maturity Model Explainer.

http://www.alta.org/news/news.cfm?newsID=31639

TITLEGRAM 2016-02 • 23American Land Title Association (ALTA)

ALTA Board Approves Modifications to Best PracticesALTA’s Board of Governors on June 9 approved proposed changes to the association’s “Title Insurance and Settlement Company Best Practices” to better reflect market needs and trends.

“ALTA’s Best Practices Framework is the clear choice among title and settlement companies to help develop policies and procedures that protect consumers, promote quality service, provide for ongoing employee training, and meet legal and market requirements,” said Michelle Korsmo, ALTA’s chief executive officer. “The Best Practices also have become the blueprint used by many lenders to meet third-party vendor management regulatory requirements. Since initially publishing the Best Practices Framework more than three years ago, ALTA has engaged in discussions with stakeholders to continually improve Best Practices and meet market demand.”

The Best Practices changes are under a public comment period until July 29. Send questions and comments to bestpractices@alta.org. After the review comment period ends, comments will be carefully considered before the changes are finalized and become effective Oct. 7. Companies may implement changes immediately.

Click here to view documents with all of the proposed changes.

The Board approved proposed changes and additions to:

• Pillar 2: Adopt and maintain appropriate written procedures and controls for Escrow Trust Accounts allowing for electronic verification of reconciliation.

• Pillar 3: Adopt and maintain a written privacy and information security program to protect Non- public Personal Information as required by local, state and federal law.

• Pillar 4: Adopt standard real estate settlement procedures and policies that help ensure compliance with Federal and State Consumer Financial Laws as applicable to the Settlement process.

• Pillar 5: Adopt and maintain written procedures related to title policy production, delivery, reporting and premium remittance.

Pillar 2Under Pillar 2, language requiring the use of positive pay, reverse positive pay, Automatic Clearing House transactions and international wire transfers was modified. The pillar and associated assessment procedure now reads:

Utilize Positive Pay or Reverse Positive Pay, if available in the marketplace, and have policies and procedures in place that prohibit or control the use of Automated Clearing House blocks and international wire transfers to protect against unauthorized transactions.

“The original Best Practices requirement to block ACH and international wires proved troublesome for companies that had legitimate business reasons to utilize these services,” Korsmo said. “Additionally, many banks reported that they do not offer ACH or international wire blocks, but rather offer controls to help prevent any unauthorized transactions. This policy was modified to help companies better perform their duties by allowing them to either prohibit or control the use of ACH and international wires.”

Pillar 3Pillar 3 changes clarify requirements associated with maintaining and disposing of non-public personal information. Specifically, this portion of the Best Practices Framework included the addition of state law requirements for the maintenance and disposal of records (including electronic) that include NPI.

Additionally, the following requirement was added to the Pillar 3 Framework:

Companies should securely maintain and dispose of records containing Non-public Personal Information pursuant to an established timeframe for retaining records, as documented in the Company’s information security program that takes into consideration the appropriate legal, regulatory, and business requirements.

“We heard confusion that some believes the Best Practices required the disposal of records immediately after settlement,” Korsmo said. “This clarification makes it clear that a company may securely retain records containing NPI if there’s a need to preserve records to meet legal, regulatory and/or business requirements. The amendment requires companies to establish a timeline for disposing of records containing NPI to help protect against unauthorized access or use of NPI.”

TITLEGRAM 2016-02 • 24American Land Title Association (ALTA)

Pillar 4Changes to Pillar 4 added standards for engaging third-party signing professionals. The pillar now says written procedures should help ensure any third-party signing professional—including Notaries Public—engaged by a title or settlement company possess the appropriate qualifications, professionalism and knowledge that can be determined by a mix of legal and contractual obligations.

Companies must conduct the following due diligence:

Verify that the third-party signing professional maintains Errors and Omissions insurance and Notary surety bond; and

Requires that third-party signing professionals: (i) Furnish evidence that they have attained a recognized and verifiable industry designation; or (ii)Require that third-party signing professionals provide evidence of their current state licensure, where required, and an acknowledgement of compliance with the Company’s instructions.

Also, the company that contractually retains the third-party signing professional is responsible for verifying that the applicable standards are met.

“We felt that it was pertinent to include standards in the Best Practices Framework to reflect the increased prevalence and reliance by title insurance agents and underwriters on third-party signing professionals,” Korsmo said. “Given this trend and the development of industry designations and certifications in the notary industry, this additional will highlight these tools to agents.”

Pillar 5Lastly, Pillar 5 changes modify the time frame that title insurance agents must report title insurance policies and remit premiums to their underwriters. The pillar now says that a copy of insurance policies must be reported if required by the underwriter. Meanwhile, title agents must remit premiums to the underwriter within 45 days after the later of (i) the date of Settlement or (ii) the date that the terms and conditions of the title insurance commitment are satisfied. Previously, the pillar required polices to be reported and premiums to be remitted underwriter by the last day of the month following the month in which the insured transaction was settled.

“ALTA’s Best Practices Executive Committee and Task Force felt that having a flexible timeframe for reporting remittance creates unnecessary confusion for title agents,” Korsmo said.

http://www.alta.org/news/news.cfm?newsID=31640

TITLEGRAM 2016-02 • 25American Land Title Association (ALTA)

TITLEGRAM 2016-02 • 26Consumer Financial Protection Bureau (CFPB)

How to Disclose Flood Insurance on Loan Estimate and Closing DisclosureSource: Consumer Financial Protection Bureau (CFPB)April 21, 2016

The Consumer Financial Protection Bureau (CFPB) held a webinar April 12 to address frequently asked questions about the TILA-RESPA Integrated Disclosures (TRID) rule. One of the questions addressed was how to show flood insurance premiums on the Loan Estimate and Closing Disclosure.

The CFPB staff stated that the term “homeowner’s insurance” as used under the rule includes flood insurance. Specifically, the CFPB staff stated that “homeowner’s insurance” under the rule means, “the amounts identified in § 1026.4(b)(8), which include premiums for insurance against losses or damage to property written in connection with the credit transaction.

As such, flood insurance is treated under the rule, and more generally under Regulation Z, as other casualty insurance, such as homeowner’s insurance.” CFPB straff noted that flood insurance may be disclosed on the forms under the Estimated Taxes, Insurance and Assessments in the Projected Payments table in the Homeowner’s Insurance line. Tthe box for Homeowner’s Insurance would be checked, and Yes or No would be indicted to state whether it is escrowed, according to the webinar. In addition, in the Projected Payments table, the Escrow amount would include any amount escrowed for flood insurance.

Under the Prepaids section in Other Costs, if there is any amount that is prepaid for flood insurance, it would be disclosed on the Homeowner’s Insurance line Section F along with any other prepaid amount for the homeowner’s insurance premium. Under the Escrow section in Other Costs, if any flood insurance premiums are in escrow, they would be disclosed on the line for Homeowner’s Insurance in Section G.

According to Richard Horn of Richard Horn Legal PLLC, the CFPB noted that the flood insurance payments would be reflected in the Escrow tables on page four of the Closing Disclosure, “but they did not explicitly state how it would be referred to (i.e., as Homeowner’s Insurance or Flood Insurance).”

“In addition, this answer does not address how to disclose the payee and the term in the Prepaids section or the amount of months collected in the Escrows section for Flood Insurance if this information is different from the hazard insurance policy,” Horn added.

Click here to access recordings of the CFPB’s previous webinars on the integrated disclosures.https://consumercomplianceoutlook.org/outlook-live/archives/

CFPB TRID Webinar from April 12 Now AvailableSource: American Land Title Association (ALTA)May 6, 2016

A webinar the Consumer Financial Protection Bureau (CFPB) held April 12 that addressed several industry questions regarding the TILA-RESPA Integrated Disclosures (TRID) is now available.

The webinar addressed a question posed by ALTA whether the charge for an owner’s policy can be disclosed as a negative number under TRID. Click here to listen to the portion of the webinar that addresses this question.

Other topics covered included:• General principles• APR• Total Interest Percentage• Flood insurance premiums• Escrow accounts for refinance transactions• Separate disclosures (borrower’s and seller’s

information, creditor’s copy, seller’s Closing Disclosure, seller-paid costs, seller-paid real estate commissions)

• Assumptions• Property taxes• Fees collected prior to consummation• Calculating cash to close—loan amount• Principal curtailments• Construction lending—interest reserve

http://www.alta.org/news/news.cfm?newsID=31157

http://www.consumerfinance.gov/policy-compliance/guidance/implementation-guidance/tila-respa-disclosure-rule/?utm_source=newsletter&utm_medium=email&utm_term=05042016_a1&utm_campaign=RegImp’

Click here to access recordings of the CFPB’s previous webinars on the integrated disclosures.https://consumercomplianceoutlook.org/outlook-live/archives/

TITLEGRAM 2016-02 • 27Consumer Financial Protection Bureau (CFPB)

Settlement Agents Must Provide Seller Closing Information to LenderSource: American Land Title Association (ALTA)April 21, 2016

While implementation of the TILA-RESPA Integrated Disclosures (TRID) rule has required lenders, real estate agents and title insurance professionals to radically change the way they conduct business and exchange information, it changed nothing in regard to data privacy. However, there’s been significant confusion about what information can be shared with various parties involved in the transaction.

Lenders need seller information to check the accuracy of the borrower’s Closing Disclosure—both for audit purposes and for investors who may acquire an interest in the mortgage. Due to privacy concerns of sharing non-public personal information, lenders are having difficulty obtaining the seller information from title and settlement agents. Under TRID, though, title and settlement agents must provide the seller’s information to the lender, according to Richard Horn, the former CFPB attorney who led the TRID final rule and the design of the forms, and has since formed the law firm Richard Horn Legal PLLC.

The TRID rule allows seller information to be provided on the borrower’s Closing Disclosure or on a separate document that is not provided to the borrower. Specifically, according to Horn, section 1026.38(t)(5)(v) and (vi) allows for the separation of borrower and seller information onto separate Closing Disclosures because of privacy concerns. He notes that this does not apply to the seller’s closing costs, which must appear on the borrower’s Closing Disclosure. The separate Closing Disclosure provided to the seller can either be a standard Closing Disclosure with the borrower’s information left blank, or a separate seller-specific format of the Closing Disclosure provided in the rule. Section 1026.19(f)(4)(iv) of TRID requires settlement agents to provide a copy of the seller’s Closing Disclosure to the lender, when the borrower and seller disclosures are provided separately pursuant to section 1026.38(t)(5)(v) and (vi).

“In all cases, the seller information will have to be provided to the lender under the TRID rule,” Horn said. “Either the seller’s information will be included on the borrower’s Closing Disclosure or it will be provided to the lender in the form of a copy of the seller’s Closing Disclosure.”

Federal privacy requirements under the Gramm-Leach Bliley Act (GLB) permit disclosures of NPI as required by law. GLB states that it does not prohibit disclosure “to comply with federal, state, or local laws, rules, and other applicable legal requirements.” (15 USC 6802(e)(8)). The CFPB’s Regulation P provides the same exception for the disclosure of NPI (12 CFR 1016.15(a)(7)(i)).

“I suspect many state laws provide similar exceptions for disclosures of NPI that are required by law, but you should conduct a review of your state’s law to be certain,” Horn said. “Even if the state law does not contain such an exception, it is likely that TRID would preempt any such state law prohibition, because federal law would directly contradict that state law.”

While TRID does not technically place an affirmative obligation under TRID for the lender to obtain the seller’s Closing Disclosure, Horn said there are reasons why settlement agents should provide a seller Closing Disclosure to the lender.

“One such reason is that the preamble indicates that the CFPB considers retention of the seller’s Closing Disclosure to be required of lenders, and that examiners will expect to see it in the lender’s file,” Horn added.

In addition, lenders should obtain the seller’s Closing Disclosure to verify the accuracy of the seller information it is obligated to disclose on the borrower’s Closing Disclosure, Horn said. The majority of information is identical between the borrower’s and seller’s CDs (see comment 38(j)-3 for a list of this information). For example, much of the information between section 1026.38(j) and (k) is identical. The seller’s Closing Disclosure can help verify the information for the borrower’s Closing Disclosure, which the lender is liable for under TRID.

“This liability means that the accuracy of the seller’s closing costs and other information that must appear on both the borrower’s and seller’s Closing Disclosure should be of concern to lenders,” Horn said. “Both disclosures should also reconcile with any other ALTA Settlement Statement or disbursement document that is used by the settlement agent.”

http://www.alta.org/news/news.cfm?newsID=30620

TITLEGRAM 2016-02 • 28Consumer Financial Protection Bureau (CFPB)

During a webinar on April 12, the Consumer Financial Protection Bureau addressed several questions regarding the TILA-RESPA Integrated Disclosures (TRID) rule that stakeholders have submitted in recent weeks, including the disclosure of fees for owner’s title insurance.

The CFPB specifically addressed this question submitted by ALTA during the webinar:

The calculation of the owner’s title policy premium (in a purchase transaction when owner’s and lender’s policies are issued simultaneously) in accordance with the rule might result in a negative number. Does the creditor disclose this negative number for the owner’s title policy on the Loan Estimate and Closing Disclosure?

Dania Ayoubi, counsel in the CFPB’s Office of Regulations, said that in this situation, the creditor would disclose the premium for the owner’s policy as a negative number.

“When a simultaneous issue rate or discount is used—mostly in purchase transactions—the cost of an owner’s title insurance policy is disclosed as the incremental cost of that owner’s title insurance beyond the standard non-discounted cost of the lender’s title insurance policy,” Ayoubi said. “When disclosed in this fashion, the disclosure conveys to the consumer that it is less expensive to purchase both owner’s title insurance and lenders title insurance together than it is to purchase just lenders policy by itself.”

She referenced Comment 37(g)(4)-2 of the rule, which states “The premium for an owner’s title insurance policy for which a special rate may be available based on the simultaneous issuance of a lender’s and an owner’s policy is calculated and disclosed pursuant to § 1026.37(g)(4) as follows:

The title insurance premium for a lender’s title policy is based on the full premium rate, consistent with § 1026.37(f)(2) or (f)(3).

The owner’s title insurance premium is calculated by taking the full owner’s title insurance premium, adding the simultaneous issuance premium for the lender’s coverage, and then deducting the full premium for lender’s coverage.”

Ayoubi said the CFPB previously addressed how these premiums should be calculated and disclosed in the May 2015 webinar. She added that there are no provisions in Regulation Z that would prohibit the cost of owner’s title insurance from being disclosed as a negative number.

CFPB Says Owner’s Policy May Be Disclosed as Negative Number Under TRIDSource: American Land Title Association (ALTA)April 21, 2016

ALTA issued a release last week reminding the CFPB that the way the rule requires the disclosure of premiums for an owner’s policy is not “transparent,” “practical” or “accurate” as the bureau believes and is inconsistent with the Bureau’s mission to better inform consumers.

Other topics covered included:

• General principles• APR• Title Interest Percentage• Flood insurance premiums• Escrow accounts for refinance transactions• Separate disclosures (borrower’s and seller’s

information, creditor’s copy, seller’s Closing Disclosure, seller-paid costs, seller-paid real estate commissions)

• Assumptions• Property taxes• Fees collected prior to consummation• Calculating cash to close—loan amount• Principal curtailments• Construction lending—interest reserve

Click here to access the entire presentation from the April 12 webinar. The format of the webinar was similar to previous webinars the CFPB has provided. Click here to view previous webinars.

Others participating on the webinar from CFPB’s Office of Regulations included Seth Caffrey, counsel; Kristin Switzer, regulatory implementation analyst; Alexa Reimelt, counsel; and Chelsea Peter, counsel.

CFPB staff reminded listeners that the webinar is not a substitute for the rule. Only the rule, including its amendments and official commentary, can provide complete and definitive information regarding the Rule’s requirements, according to the CFPB.

As a general rule, the CFPB presenters indicated that when determining how to comply with the rule, one should first search the rule to see if it specifies how to comply. Absent any specific guidance, one can disclose as he or she thinks is appropriate, as long as that method of disclosing is not prohibited by the rule. The main takeaway was that there are oftentimes several ways of disclosing a fee, any one of which may be acceptable under the rule. This approach reiterates ALTA’s message that members need to communicate with their lender partners to determine how fees will be disclosed.

http://blog.alta.org/2016/04/cfpb-says-owners-policy-may-be-disclosed-as-negative-number-under-trid.html

TITLEGRAM 2016-02 • 29Consumer Financial Protection Bureau (CFPB)

CFPB Approach to Disclose Title Fees on Mortgage Disclosures Not ‘Transparent,’ ‘Practical’ or ‘Accurate’Source: American Land Title Association (ALTA)April 8, 2016

The American Land Title Association (ALTA), the national trade association of the land title insurance industry, released the following statement in response to Consumer Financial Protection Bureau (CFPB) Director Richard Cordray’s statements on the disclosure of the costs of title insurance in a letter to U.S. Senator Bob Corker (R-TN) today:

“We thank Senator Corker for his very helpful letter to CFPB and appreciate Director Cordray’s response. This important correspondence demonstrates that there is confusion with this complex 1,888-page regulation and that constructive oversight by Congress is productive,” said Michelle Korsmo, ALTA’s chief executive officer. “We all agree that consumers should be well-informed about the accurate costs of purchasing a home or refinancing a mortgage—including what they pay for each service during the transaction. However, as we have consistently said, the Bureau’s current approach does not provide consumers with clear information about their title insurance costs. The required calculation under TRID for title insurance fees is not “transparent,” “practical” or “accurate” as Director Cordray states in his letter and is inconsistent with the Bureau’s mission to better inform consumers.

“The title and settlement industry share the Bureau’s desire to better inform consumers. We look forward to continuing our conversation with Director Cordray and the CFPB staff to correct the calculation of title insurance policy premiums on the mortgage disclosures.

“While we disagree with the CFPB’s inaccurate disclosure of title insurance fees on the mortgage disclosures, the letter is helpful in providing clarification about how lenders and settlement agents should manage liability. In addition, the explanation about cure provisions for violations of the rule is welcomed,” Korsmo continued.

For more information about title insurance and the real estate settlement process, please visit http://www.homeclosing101.org/.

http://www.alta.org/press/release.cfm?r=253

Cordray Says Lenders Can’t ‘Unilaterally’ Shift TRID Liability to Settlement AgentsSource: American Land Title Association (ALTA)April 8, 2016

Responding to a letter from U.S. Sen. Corker, Consumer Financial Protection Bureau Director Richard Cordray wrote that lenders may not shift liability for errors on the Know Before You Owe mortgage disclosures to third parties.

“While creditors may enter into indemnification agreements and other risk-sharing arrangements with third parties, creditors cannot unilaterally shift their liability to third parties and, under the Truth in Lending Act, alone remain liable for errors on the Know Before You Owe mortgage disclosures,” Cordray wrote.

Cordray did write that lenders and settlement agents are free to decide how to divide the responsibility and risk when implementing the new requirements through contracts, however, he added creditors “alone remain liable for errors on the Know Before You Owe mortgage disclosures.”

In March, Corker warned Cordray about implementation issues and consumer confusion regarding TRID.

Corker’s office reached out to ALTA after a constituent in Tennessee contacted his office about TRID’s misleading and inaccurate approach of disclosing title insurance premiums. ALTA briefed Corker’s staff on key TRID concerns including the inaccurate disclosures of title insurance premiums, the need for more written guidance to clarify conflicting interpretations of compliance, lender attempts to inappropriately shift TRID liability through written closing instructions and third-party vendor management.

http://www.alta.org/news/news.cfm?newsID=30919

TITLEGRAM 2016-02 • 30Consumer Financial Protection Bureau (CFPB)

Who Handles Preparation and Delivery of Seller’s Closing Disclosure?Source: American Land Title Association (ALTA)March 24, 2016

To comply with the TILA-RESPA Integrated Disclosures rule, both the buyer and seller must receive Closing Disclosures that provide details of the transaction, according to Richard Horn, a former CFPB attorney who led the TRID final rule and the design of the forms, and has since formed the law firm Richard Horn Legal PLLC.

“In sale transactions, the rule places the responsibility on the settlement agent to provide the seller with a Closing Disclosure relating to the seller’s transaction no later than the day of consummation,” Horn said. (See § 1026.19(f)(4).)

Settlement agents cannot use an ALTA Settlement Statement or other disbursement document in place of the Closing Disclosure. There is not a “receipt” requirement, which means that technically a settlement agent is not required under TRID to confirm receipt. “But it may be a best practice to obtain such confirmation—a signature on the Closing Disclosure at closing, for example,” Horn added.

The rule recognizes that in some instances, the settlement agent may meet this obligation by either providing the seller with a seller-only Closing Disclosure or a combined buyer/seller Closing Disclosure, according to Steve Gottheim, ALTA’s senior counsel.

“This can be done by either the lender or the settlement agent depending on the agreement between those parties,” he added. “Similar to lenders being liable for delivery and accuracy of the buyer’s Closing Disclosure, settlement agents are liable for delivery and accuracy of the seller’s Closing Disclosure. If a lender decides to provide the seller’s Closing Disclosure, the settlement agent must be aware of this process and ensure accuracy.”

http://www.alta.org/news/news.cfm?newsID=30605

CFPB Provides Annotated Versions of LE/CD With Citations to Final Rule Source: American Land Title Association (ALTA)May 12, 2016

The Consumer Financial Protection Bureau (CFPB) has published annotated versions of the Loan Estimate and Closing Disclosure that provide citations to the disclosure provisions in Chapter 2 of TILA referenced in the Integrated Mortgage Disclosure final rule.

Closing Disclosure With fields annotated to show rule citations With fields annotated to show TILA disclosure citations

Loan Estimate With fields annotated to show rule citationsWith fields annotated to show TILA disclosure citations

According to the bureau, the annotated forms are intended to provide a starting point for analysis of the relevant regulatory text. For complete and definitive requirements, the CFPB refers the industry to the rule and its Official Interpretations. The CFPB added that the annotated forms do not represent legal interpretation, guidance or advice of the bureau.

http://www.alta.org/news/news.cfm?newsID=31236

TITLEGRAM 2016-02 • 31Consumer Financial Protection Bureau (CFPB)

CFPB Releases Special Edition of Supervision Highlights and Updates Mortgage Servicing Exam Procedures

The Consumer Financial Protection Bureau (CFPB) released a special edition supervision report focused specifically on mortgage servicers. The report found that some mortgage servicers continue to use failed technology that it believes has harmed consumers, putting the company in violation of the CFPB’s new servicing rules. In its examinations covering numerous mortgage servicers since the new CFPB rules took effect in January 2014, CFPB examiners have found violations because of deficient technology and process breakdowns. Specifically, examiners have observed problems with loss mitigation and servicing transfers.

Among the mortgage servicing problems observed by CFPB examiners:

• Information about loan modifications is late, incorrect, or deceptive due to technological breakdowns or malfunctions: CFPB examiners found problems with loan modification acknowledgement notices, including sending them too late and having incorrect information or deceptive statements. Examiners found one or more servicers failed to send any acknowledgement notices due to a repeated processing platform malfunction over a significant period of time. These breakdowns caused delays in converting trial modifications to permanent modifications, resulting in harm to borrowers.

• Consumers get the runaround when loans transfer to a new servicer with incompatible computer systems: The rights to manage a loan are frequently bought and sold among servicers. Transferring loans during the loan modification process heightens risks to consumers, including the risk that documents and information might not be accurately transferred to the new servicer. CFPB examiners found that a number of servicers had incompatible technology platforms that led, in part, to the new servicers failing to identify and honor modification agreements already in place.

Consumer Financial Protection Bureau Supervision Finds Mortgage Servicers’ Ongoing Technology Failures and Process Breakdowns Trigger Rule ViolationsSource: Consumer Financial Protection Bureau (CFPB)JUN 22, 2016

Where CFPB examiners find violations of law or other significant problems or weaknesses, they alert the institutions to their concerns and outline necessary remedial measures. When appropriate, the CFPB opens investigations for potential enforcement actions. The CFPB expects all entities under its supervision to respond to customer complaints and identify major issues and trends that may pose broader risks to their customers. The CFPB often finds problems during supervisory examinations that are resolved without an enforcement action. When examiners find violations of law, they direct entities to change their conduct and remediate consumers as applicable.

CFPB examiners also observed that some servicers have made significant improvements in the last several years, in part by enhancing and monitoring their service platforms, staff training, coding accuracy, auditing, and allowing for greater flexibility in operations. For example, one or more servicers had tools in place to search, review, and track complaint records for potential regulatory violations. One or more servicers also created a complaint governance committee to oversee all customer complaints to ensure they receive appropriate treatment.

To spur industry in its general compliance with CFPB rules, the Bureau today is also releasing an updated mortgage servicing exam manual.

This Supervisory Highlights Mortgage Servicing Special Edition is available at:

http://www.consumerfinance.gov/data-research/research-reports/supervisory-highlights-mortgage-servicing-special-edition-issue-11/

News release

http://www.consumerfinance.gov/about-us/newsroom/consumer-financial-protection-bureau-supervision-finds-mortgage-servicers-ongoing-technology-failures-and-process-breakdowns-trigger-rule-violations/

TITLEGRAM 2016-02 • 32Consumer Financial Protection Bureau (CFPB)

Mortgage Servicing Exam ProceduresSource: Consumer Financial Protection Bureau (CFPB)JUN 22, 2016

The CFPB regularly publishes a mortgage servicing chapter of the CFPB Supervision and Examination Manual to reflect regulatory changes, to make technical corrections, and to update examination priorities. Today, the CFPB released a third update to its exam procedures. The exam procedures offer valuable guidance to financial institutions and mortgage companies on what the CFPB will be looking for in its exams. Among other things, mortgage servicers should note a greater emphasis in exams on the following:

• Complaint handling and requests by troubled borrowers: The CFPB has enhanced the section related to consumer complaints to highlight that examiners will be reviewing whether the servicer has an adequate process for expedited evaluation of complaints or information requests from borrowers facing foreclosure. The possibility of foreclosure puts even more weight on the importance of an appropriate complaint escalation process, which is essential to any compliance management system.

• Discrimination issues: The CFPB is conducting targeted reviews of mortgage servicers’ compliance with fair lending laws. This includes looking at those servicers that are creditors, such as those that participate in a credit decision about whether to approve a mortgage loan modification. These reviews include making sure creditors do not discriminate in any aspect of a credit transaction because of race, color, religion, national origin, sex, marital status, age, income coming from a public assistance program, or an applicant’s exercise of certain consumer protection rights.

This Supervisory Highlights Mortgage Servicing Special Edition is available at: http://www.consumerfinance.gov/data-research/research-reports/supervisory-highlights-mortgage-servicing-special-edition-issue-11/

The updated mortgage servicing exam procedures is available at: http://www.consumerfinance.gov/policy-compliance/guidance/supervision-examinations/mortgage-servicing-examination-procedures/

News releasehttp://www.consumerfinance.gov/about-us/newsroom/consumer-financial-protection-bureau-supervision-finds-mortgage-servicers-ongoing-technology-failures-and-process-breakdowns-trigger-rule-violations/

Consumer Finanical Protection Bureau Proposes To Amend Gramm-Leach-Bliley Rule To Implement Recent Congressional LegislationSource: Consumer Financial Protection Bureau (CFPB)JUL 01, 2016

The Consumer Financial Protection Bureau (CFPB) today proposed to implement recent Congressional legislation that allows financial institutions that meet certain requirements to be exempt from sending annual privacy notices to their customers.

The Gramm-Leach-Bliley Act (GLBA) generally requires that financial institutions send annual privacy notices to customers. These notices must describe whether and how the financial institution shares customers’ nonpublic personal information. If the institution shares this information with unaffiliated third parties in ways other than specified by the statute, the institution typically must notify customers of their right to opt out of sharing and inform them of how to do so.

In December 2015, Congress amended the GLBA as part of the Fixing America’s Surface Transportation Act (FAST Act). This amendment provides financial institutions that meet certain conditions an exemption to the requirement under the GLBA to deliver an annual privacy notice. A financial institution can use the annual notice exception if it limits its sharing of customer information so that the customer does not have the right to opt out and has not changed its privacy notice from the one previously delivered to its customer. Today’s proposed amendment would implement this legislation. The proposal would also establish deadlines for institutions resuming annual privacy notices if their practices change and cease to qualify for the exemption.

In 2014 the CFPB amended the federal regulation that implements the GLBA to establish an alternative delivery method for annual privacy notices. This enabled companies that limit sharing of their customers’ information and meet other requirements to post annual privacy notices online rather than delivering them to customers individually. Under today’s proposal, any financial institution that meets the criteria for this alternative delivery method would also meet the requirements for the new annual notice exception. In light of this, the Bureau is proposing today to also remove the alternative delivery method.

The proposed amendment to the rule is available at:

http://www.consumerfinance.gov/policy-compliance/rulemaking/rules-under-development/amendment-annual-privacy-notice-requirement-under-gramm-leach-bliley-act-regulation-p/

https://www.consumerfinance.gov/about-us/newsroom/consumer-financial-protection-bureau-proposes-amend-gramm-leach-bliley-rule-implement-recent-congressional-legislation/

TITLEGRAM 2016-02 • 33Consumer Financial Protection Bureau (CFPB)

Thresholds Apply to Transactions under the CARD Act, HOEPA, and Ability-to-Repay Mortgage Rule

The Consumer Financial Protection Bureau (CFPB) announced its annual adjustments to the dollar amounts of various thresholds under the Truth in Lending Act regulations that will apply to certain consumer credit transactions in 2017. The adjustments are based on the percentage change in Consumer Price Index. The notice addresses the thresholds related to the minimum interest charge and safe harbor penalty fees under the Credit Card Accountability Responsibility and Disclosure Act (CARD Act), the total loan amount and points and fees dollar trigger for high-cost mortgages under the Home Ownership and Equity Protection Act (HOEPA), and the maximum points and fees for qualified mortgages under the Dodd-Frank Wall Street Reform and Consumer Protection Act. The notice also revises one of the 2016 safe harbor penalty fee amounts due to a decline in the 2015 Consumer Price Index that was not fully accounted for, and such revision is effective upon publication in the Federal Register.

The notice submitted to the Federal Register is available here:

http://www.consumerfinance.gov/policy-compliance/rulemaking/final-rules/truth-lending-regulation-z-annual-threshold-adjustments-card-act-hoepa/

http://www.consumerfinance.gov/about-us/newsroom/consumer-financial-protection-bureau-announces-annual-dollar-thresholds-truth-lending-act-regulations-certain-credit-transactions/

Final Rule

Truth in Lending (Regulation Z) Annual Threshold Adjustments (CARD Act, HOEPA and ATR/QM)

The Bureau of Consumer Financial Protection (Bureau) is issuing this final rule amending the regulatory text and official interpretations for Regulation Z, which implements the Truth in Lending Act (TILA). The Bureau is required to calculate annually the dollar amounts for several provisions in Regulation Z; this final rule revises, as applicable, the dollar amounts for provisions implementing amendments to TILA under the Credit Card Accountability Responsibility and Disclosure Act of 2009 (CARD Act), the Home Ownership and Equity Protection Act of 1994 (HOEPA), and the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act). In addition to adjusting these amounts, where appropriate, based on the annual percentage change reflected in the Consumer Price Index in effect on June 1, 2016, the Bureau is correcting a calculation error pertaining to the 2016 subsequent violation penalty safe harbor fee.

Issued Rulehttp://www.consumerfinance.gov/documents/497/Truth_in_Lending_Comb_Reg_Z_Annual_Threshold_Adj_Final_Rule.pdf

Consumer Financial Protection Bureau Announces Annual Dollar Thresholds in Truth in Lending Act Regulations for Certain Credit TransactionsSource: Consumer Financial Protection Bureau (CFPBJUN 17, 2016

TITLEGRAM 2016-02 • 34Consumer Financial Protection Bureau (CFPB)

The Consumer Financial Protection Bureau (CFPB) on May 5 proposed rules that would prohibit mandatory arbitration clauses in new contracts that block groups of their customers from suing them.

According to the bureau, the proposal would open up the legal system to consumers so they could file a class action or join a class action when someone else files it. Groups of consumers would have the opportunity to obtain relief from the legal system, and many companies would be incentivized to comply with the law to avoid group lawsuits. Also, the Bureau would be able to monitor the individual arbitration process, providing insight into whether companies are abusing arbitration or whether the process itself is fair.

The rule only applies to certain classes of providers (primarily creditors, servicers, payment processers, debt collectors and creditor report companies). The rule explicitly states that services outside the bureau’s scope (insurance) or not specifically listed (real estate settlement services) are not part of the rule.

The proposed rules should have minimal impact on the arbitration provision in title insurance policies. Due to ALTA lobbying efforts in 2009-2010, “the business of insurance” is not considered a consumer financial product or service under Dodd-Frank and is outside the bureau’s scope except as specifically outlined in RESPA and TILA. While the CFPB does have authority to regulate real estate settlement services, ALTA is not aware of widespread use of arbitration clauses in these agreements.

From an industry perspective arbitration is a helpful tool because it is typically less costly, takes decisions out of the hands of juries and puts them in the hands of more impartial and less inflamed arbiters and can help limit spurious class actions suits by making them more costly for plaintiffs.

A CFPB study released in 2015, showed that very few consumers ever bring individual actions against financial service providers either in court or in arbitration. The study found that class actions provide a more effective means for consumers to challenge problematic practices by these companies. According to the study, class actions succeed in bringing hundreds of millions of dollars in relief to millions of consumers each year and cause companies to alter their legally questionable conduct. The study showed that at least 160 million class members were eligible for relief over the five-year period studied. Those settlements totaled $2.7 billion in cash, in-kind relief, and attorney’s fees and expenses. However, where mandatory arbitration clauses are in place, companies are able to use those clauses to block class actions.

The Dodd-Frank Act mandated the CFPB to review the affect of arbitration clauses on consumers.

http://www.alta.org/news/news.cfm?newsID=31165

CFPB PRESS RELEASEhttp://www.consumerfinance.gov/about-us/newsroom/consumer-f inancial-protection-bureau-proposes-prohibiting-mandatory-arbitration-clauses-deny-groups-consumers-their-day-court/

CFPB BLOGhttp://www.consumerfinance.gov/about-us/blog/cfpb-proposes-prohibiting-mandatory-arbitration-clauses-deny-groups-consumers-their-day-court/

Prepared Remarks of CFPB Director Richard Cordray at the Field Hearing on Arbitration Clauseshttp://www.consumerfinance.gov/about-us/newsroom/prepared-remarks-cfpb-director-richard-cordray-field-hearing-arbitration-clauses/

eRegulations updated with Regulations X, C, and moreThe CFPB recently updated its eRegulations platform, which now includes Regulations C, X, and DD. It has also updated Regulation Z on the eRegulations platform so that it includes all the amendments made to the regulation through March 2016.

eRegulations is a tool the CFPB created in 2013 that lets you search through its regulations, read the official interpretation alongside the rule text, and see a timeline of the rule and any amendments.

http://www.consumerfinance.gov/about-us/blog/eregulations-updated-regulations-x-c-and-more/

eRegulations platformhttp://www.consumerfinance.gov/eregulations/

CFPB Proposes Prohibiting Mandatory Arbitration Clauses Source: American Land Title Association (ALTA)May 10, 2016

TITLEGRAM 2016-02 • 35Consumer Financial Protection Bureau (CFPB)

MLTA Leadership 2015 - 2016OFFICERS AND DIRECTORSPresidentSue BasiagoMidland Title7760 France Avenue South, Suite 140Richfield, MN 55435-5833(612) 866-6102sue@midlandtitlemn.com

President-ElectNancy LandmarkCommercial Partners Title, LLC200 South Sixth Street, Suite 1300Minneapolis, MN 55402(952) 337-2470nancyl@cptitle.com

Board of Directors - 1 Year TermKaren DrillBurnet Title5151 Edina Industrial Blvd., Suite 500Edina, MN 55439(952) 886-6845karen.drill@burnettitle.com Board of Directors – 2 Year TermNicholas KoesterFidelity National Title Group7701 France Ave. South, Suite 120Edina, MN 55435(952) 826-3071koestern@ctt.com Board of Directors - 3 Year TermDan PearsonOld Republic National Title Insurance Company400 Second Avenue SouthMinneapolis, MN 55401-2499(612) 336-7190dpearson@oldrepublictitle.com

Immediate Past PresidentJim MilinkovichFirst American Title Insurance Company701 Xenia Avenue South, Suite 450Golden Valley, MN 55416(763) 852-3800jmilinkovich@firstam.com

Secretary-TreasurerRichard WelshonsDCA Title1250 North Frontage RoadHastings, MN 55033(651) 304-3501r.welshons@dcatitle.com

COMMITTEE CHAIRSEducation CommitteeBrandt KeefeStewart Title Guaranty Company1650 West 82nd Street, Suite 100Bloomington, MN 55431(952) 948-3218bkeefe@stewart.com

David WelshonsDCA Title1250 North Frontage RoadHastings, MN 55033(651) 304-3500d.welshons@dcatitle.com

Legislative CommitteeDan PearsonOld Republic National Title Insurance Company400 Second Avenue SouthMinneapolis, MN 55401-2499(612) 336-7190dpearson@oldrepublictitle.com

Chad NovakCommercial Partners Title, LLC200 South Sixth Street, Suite 1300Minneapolis, MN 55402(612) 643-1050chadn@cptitle.com

Membership and Public RelationsCommitteeKathy AustenChicago Title Insurance Company7701 France Avenue South, Suite 120Edina, MN 55435(952) 826-3010austenk@ctt.com

Nominating CommitteeEdith MichalskiArrowhead Abstract & Title Co.314 West Superior StreetDuluth, MN 55802(218) 722-0052emichalski@arrowheadabstract.com

Technology CommitteeManoj PurohitNorth American Title Insurance Company10150 Mallard Creek Road, Suite 505Charlotte, NC 28262(312) 401-6684mpurohit@natic.com

LIAISONSCounty Recorder LiaisonDarlene MisslerFirst American Title Insurance Company701 Xenia Avenue South, Suite 450Golden Valley, MN 55416(763) 852-3800dmissler@firstam.com

ERER Commission LiaisonJeff CarlsonIndecomm Global2925 Country DriveSt. Paul, MN 55117(952) 766-2369jeffcarlson@indecomm.net

2016 CONVENTION HOSTOld Republic National Title Insurance Co.Linda Larson400 Second Avenue SouthMinneapolis, MN 55401-2499(612) 336-7088llarson@oldrepublictitle.com

BOARD COUNSELJames L. WiantRinke Noonan Attorneys at LawUS Bank Plaza, Suite 300St. Cloud, MN 56302(320) 656-3507jwiant@rnoon.com

LOBBYISTNancy HyldenHylden Advocacy & Law310 4th Avenue South, Suite 5010Minneapolis, MN 55415(612) 206-3765nhylden@hyldenlaw.com

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